Italy’s Snam has lined up Golar LNG to supply a liquefied natural gas floating storage and regasification unit to supply the island of Sardinia with natural gas.

Golar will deliver the existing LNG carrier Golar Arctic as an FSRU, which Snam will install in the port area of Portovesme.

The €269 million (US$283 million) contract includes the vessel and the capital expenditure required for Golar to convert the Golar Arctic into an FSRU with storage capacity of up to 140,000 cubic metres.

Once converted, Snam will purchase the vessel.

Golar noted that start of activities for the conversion of the ship into an FSRU and related fulfillments are subject to Snam’s issuance of a Notice to Proceed. It is expected that the conversion and delivery will take around two years from the NTP.

Golar LNG earlier this week released its 2021 environmental, social and governance report, which outlines the contractor’s role in advancing the global energy transition to a lower-carbon future — championing LNG as a transition fuel in partnership with renewables, and as a reliable alternative for those in need of energy security today.

As part of the target to further reduce emissions from its operations, Golar has invested in a carbon capture technology company that has developed and achieved proof of concept for a carbon dioxide capture and separation membrane technology.

Subject to successful completion of a commercial pilot project with another industrial user, the technology could be used in future floating LNG projects.