Interview - The strategic role that Italy's Adriatic LNG Terminal plays in the domestic & European gas market

Corrado Papa's picture
Corrado Papa, Commercial Manager, Adriatic LNG
Rosario Bisbiglia's picture
Rosario Bisbiglia, Gas Midstream, Energy Management & Optimization Director Short Term Gas Portfolio Management & Logistics, Edison
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This is part 2 of a two-part interview.

Part 1: Adriatic LNG & Edison: Key challenges & achievements of the Adriatic LNG Terminal

Corrado Papa, Commercial Manager at Adriatic LNG and Rosario Bisbiglia, Gas Midstream, Energy Management & Optimization Director Short Term Gas Portfolio Management & Logistics at Edison talk with Gastech News about the strategic role of the Adriatic LNG Terminal in Italy and Europe.

Gastech News: What is the strategic role of the Adriatic LNG Terminal in Italy and Europe?

Corrado Papa, Adriatic LNG: The Adriatic LNG Terminal is delivering operational excellence and innovative services as a strategic asset for the European gas market. The terminal is a gateway for gas to Europe that provides abundant clean energy, fostering internationalization and bridging the gap between the regional macro areas that produce LNG and the European gas market.

Overcoming the need of a direct link with the production areas through pipelines, the regasification terminal has been guaranteeing diversification and flexibility of energy imports to Italy and Europe. Every year Adriatic LNG regasifies almost 10% of Italian gas demand and is one of the most utilized terminal in Europe.

As for the future, we aim at consolidating our strategic importance at a national and European level in the next years, while continuing to ensure the integrity and reliability of our facilities in full respect of the environment where they are located. In particular, with the implementation of the pipeline reverse flow and with the EU market all well connected, we expect to be become a gateway for LNG into Europe and to be able to provide also services like the peak shaving to help for the security of supply.

Rosario Bisbiglia, Edison: ALNG has an important role for security of supply of the Italian gas system: it has been the first import infrastructure into the Italian market owned by an independent operator. It granted the Italian system a diversification of its supply sources, allowing the import of LNG from new sources. It also plays an important role in Edison's gas portfolio mix, which is based on 4 LT gas supply contracts with a total Acq of 15 Bcm. Combining Lng with pipe contracts allows Edison to better optimize its gas portfolio in order to serve its clients.

Gastech News: What innovative services provided by Adriatic LNG will help ensure security of gas supply?

Corrado Papa, Adriatic LNG: Recently Adriatic LNG has started providing innovative services that can create added value for our users and increase the competitiveness and security of the European gas system. The regasification terminal can, in fact, offer:

  • Peak shaving service: the LNG stored in the terminal can be used to overcome energy emergences
  • Flexibility service: the possibility to increase or decrease on a day ahead basis or intraday when the new balancing market is implemented, the quantities of gas to be redelivered into the national grid to support the TSO to balance the system and the terminal customers to balance their portfolio
  • Temporary storage: the possibility to store LNG into the terminal tanks and to get it redelivered at a later stage when needed.
  • A bundled regasification and underground storage services for industrial users so that they can supply LNG directly from producing countries

Rosario Bisbiglia, Edison: The recent development in the global LNG market have led to a lower utilization of current LNG terminals and fostered the development of new services in the European LNG facilities. Regarding new services that could be offered, send-out capacities from LNG terminals can contribute to the security of supply. In particular, LNG terminals’ send-out can be adjusted in case of demand variation or in the event of particular types of hazards in order to ensure the continuity of gas supply. The peak shaving service implemented in Italy last year during winter time is an example of this specific role for LNG as a security supply tool.

However, it is important to notice that the infrastructure alone is not sufficient to satisfy the security of supply, but a key role is played by LT supply contract. Only the long term commitment of Edison to import gas in Italy can guarantee the security of supply to Italian customers. In fact, the other two Italian LNG terminals, that don't benefit from LT supply commitment, will play a temporary role in case of persistent threats to the security of supply.

Interview, part 1: Adriatic LNG & Edison: Key challenges & achievements of the Adriatic LNG Terminal

Wednesday, November 18th at 16:30 – Corrado Papa and Rosario Bisbiglia will be speaking at the EAGC in Geneva about “The Adriatic LNG Case Study: Creating value through innovation [Flexibility in contracts]“.

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