LONDON, Mar. 11 -- OLT Offshore LNG Toscana SPA has let a €390 million contract to Saipem SPA to convert the Golar Frost LNG carrier into a floating storage and regasification unit (FSRU) for the Italian Livorno LNG terminal.
The FSRU will have a storage capacity of 137,000 cu m of LNG and a natural gas conversion capacity of 3.75 billion cu m/year, or 5% of Italy's annual needs. Work will be finished by 2011 and the unit installed some 20 km off the coast of Tuscany.
"The contract includes the offshore installation and commissioning activities, with work scheduled to be completed within 3 years," Saipem said.
Snam Rete Gas will construct the offshore and onshore pipeline that will connect the terminal to Italy's national gas grid.
The terminal has acquired all necessary authorizations and permits in Italy but has faced legal challenges from Edison Gas SPA, which is also trying to build a terminal near Livorno (OGJ Online, Aug. 7, 2007). Site preparation has begun for the Livorno terminal.
Partners in OLT Offshore LNG Toscana are Group Iride 30.5%, Endesa Europe 30.5%, Golar LNG 16%, and OLT Energy Tuscany Joint-Stock Corp. 23%.
Contact Uchenna Izundu at email@example.com.