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Expected Gas Sourcing
LNG ()
Benefits
Main Driver
Market Demand
Main Driver Explanation
Sardinia, located off the West coast of Italy, has ca. 1.7mn inhabitants and is currently the only region in Italy that does not have a proper gas
infrastructure Sassari, Nuoro, Oristano and Cagliari have already a developed local distribution network, supplied by aired LPG; local distribution
companies are developing a network covering ca. 40% of the population. Additional investments would significantly improve gas penetration in the island.
MSE, the Sardinia region and AEEGSI are assessing possible solutions to Sardinia·s gas supply via LNG
Benefit Description
Converting coal and oil fired power stations to gas will lead to a substantial reduction of CO2 emissions. A single Sardinia price for gas - enabled by a
region wide gaas Network - will also bring a relevant cost reduction for Sardinia citizens and industries, whose energy prices can be as high as twice Italian
average.
PCI Details
PCI Benefits
General Criteria Fulfilled
Yes
Specific Criteria Fulfilled
Competition, Sustainability
Specific Criteria Fulfilled Comments
This Project will halt Sardinia industrial decline driven - also - by higher than average energy cost. The high energy cost is a barrier to the
development of new competitive productive activities. Current generation capacity is coal/fuel oil based. Gas substition is an upside which will
bring environmental benefits. An integrated onshoregas + Small Scale LNG development will be the catalist for developing LNG bunkering
leveraging on Sardinia ferry connections and its position at the centre of the Med.
Barriers
Barrier Type
Description
Regulatory
NRA to clarify: 1) that Tariff Regime applicable in mainland Italy is also applicable on Sardinia gas network development, irrespective of its physical
connection with Italy's Network; 2) Tariff and TPA Regime for SSLNG (this only indirectly relevant to onshore network)
Others
Time-table of the project can be affected by the effective realization of LNG Terminals
Generated by ENTSOG PDWS on 10/10/2016 05:00:19 PM
Page 385 of 620
Current TYNDP : TYNDP 2017 - Annex A