Vitol-backed energy storage company VTTI is on the verge of procuring a majority stake in Italy’s largest liquefied natural gas (LNG) import terminal from Exxon Mobil and QatarEnergy, according to sources familiar with the matter. The potential deal, estimated to value the entire terminal at around 800 million euros ($868 million), positions VTTI to play a significant role in the European LNG market amid increasing flows of liquefied gas to Italy.
Exxon Mobil initiated the sale of its 70.68% interest in the Adriatic LNG terminal last year as part of its strategy to divest non-core assets, while QatarEnergy holds a 22% stake in the facility.
Upon finalizing the transaction, Italian gas grid operator Snam, currently holding a 7.3% stake in the terminal, will have 45 days to consider exercising its right of first refusal to enhance its ownership in the project.
Snam’s CEO previously indicated the group’s potential to elevate its stake in the terminal to up to 30% under an existing agreement with the current shareholders, reinforcing its influence over a strategic asset for Italy.
While VTTI’s acquisition attempt progresses, potential unforeseen developments could impact the deal, as noted by sources close to the matter. The sources requested anonymity as they were not authorized to discuss the matter publicly.
In December, investment manager BlackRock withdrew from exclusive negotiations to acquire the asset, paving the way for VTTI to re-engage in discussions for the purchase.
Situated approximately 9 miles (15 km) off the Veneto coastline, the Adriatic LNG terminal boasts a regasification capacity of 9 billion cubic meters of natural gas annually. Notably, it stands as the sole Italian LNG terminal capable of receiving super large-scale LNG vessels with capacities of up to 217,000 liquid cubic meters.