News

By Francesca Landini

ROME, March 27 (Reuters) - Dutch infrastructure group VTTI and German asset manager IKAV have teamed up to buy a majority stake in Italy's biggest liquefied natural gas terminal, VTTI said on Wednesday.

Under the deal, Exxon XOM.N will sell its 70.7% stake in the Adriatic LNG terminal, the U.S. oil and gas group said. QatarEnergy is also divesting its 22% stake in the infrastructure, according to three sources familiar with the matter. QatarEnergy was not immediately available to comment.

Europe has increased LNG imports after Russia's invasion of Ukraine in 2022 drastically curtailed gas coming through pipelines.

Increased flows of LNG have proven a boon for energy traders including Trafigura, Gunvor and Vitol, which is a shareholder of VTTI together with Australia's IFM and Abu Dhabi's ADNOC.

In a sign of the growing relevance of LNG for energy companies, sources told Reuters on Tuesday that energy trader Mercuria would hire prominent gas trader Steve Hill, formerly head of LNG at Shell SHEL.L

SNAM OPTION

Italian gas grid Snam SRG.MI, which currently owns a 7.3% stake in the infrastructure, now has 45 days to decide whether to exercise its right of first refusal to increase its stake in the project.

The chief executive of Snam said in January the group could increase its stake in the terminal to as much as 30%, boosting its influence over an asset considered strategic for the country.

The closing of the transaction for the terminal is expected in the second half of the year, VTTI said in a statement.

Rothschild advised the two sellers in the transaction, with Mizuho Securities acting as financial adviser for IKAV and Natixis Partners Iberia supporting the consortium.

Natixis and Intesa Sanpaolo acted as underwriters for the acquisition financing facility. Herbert Smith Freehills was legal adviser to the consortium.

The Adriatic LNG terminal is located about 9 miles (15 km) off the Veneto coastline and has a regasification capacity of 9 billion cubic metres of natural gas per year.

(Additional reporting by Sabrina Valle in Houston and Andrew Mills in Doha, writing by Alvise Armellini, editing by Gavin Jones and Deepa Babington)

((alvise.armellini@thomsonreuters.com;))

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