ROVIGO Liquefied
Natural Gas (LNG)
TERMINAL
MEGAPROJECT: The Effective Design and Delivery of Megaprojects in the European Union
Prepared by: Giorgio Locatelli (University of
Lincoln) and Mauro Mancini (Politecnico di Milano)
Contacts:
Giorgio Locatelli
University of Lincoln
Lincoln School of Engineering
Brayford Pool - Lincoln LN6 7TS
United Kingdom
Phone;+441522837946
MEGAPROJECT: The Effective Design and Delivery of
Megaprojects in the European Union
ROVIGO LNG TERMINAL (Adriatic LNG)
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MEGAPROJECT: The Effective Design and Delivery of
Megaprojects in the European Union
ROVIGO LNG TERMINAL (Adriatic LNG)
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GBS
Structure
MEGAPROJECT: The Effective Design and Delivery of
Megaprojects in the European Union
ROVIGO LNG TERMINAL
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LNG carrier near the terminal
MEGAPROJECT: The Effective Design and Delivery of
Megaprojects in the European Union
ROVIGO LNG TERMINAL
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1)GBS structure 9) Generators
2) LNG vaporizers ORV 10) Maintenance building
3) Boil-off gas compressors 11) Helicopter platform
4) Boil-off recondenser 12) LNG unloading platform
5) High-pressure pumps 13) Docking facilities
6) Flare 14) Bridges
7) Living quarters 15)Pipeline connection
8) Electric and instrumental system
MEGAPROJECT: The Effective Design and Delivery of
Megaprojects in the European Union
More than words…
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MEGAPROJECT: The Effective Design and Delivery of
Megaprojects in the European Union
More than words…
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MEGAPROJECT: The Effective Design and Delivery of
Megaprojects in the European Union
More than words…
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MEGAPROJECT: The Effective Design and Delivery of
Megaprojects in the European Union
More than words…
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MEGAPROJECT: The Effective Design and Delivery of
Megaprojects in the European Union
More than words…
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MEGAPROJECT: The Effective Design and Delivery of
Megaprojects in the European Union
More than words…
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MEGAPROJECT: The Effective Design and Delivery of
Megaprojects in the European Union
More than words…
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MEGAPROJECT: The Effective Design and Delivery of
Megaprojects in the European Union
More than words…
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MEGAPROJECT: The Effective Design and Delivery of
Megaprojects in the European Union
More than words…
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MEGAPROJECT: The Effective Design and Delivery of
Megaprojects in the European Union
SECTION 1 - BASIC PROJECT INFORMATION
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Project Title Liquefied natural gas (LNG) terminal of Rovigo.
Location 15 Km far from the coast of Porto Levante, in the province of Rovigo, in the Adriatic sea. (Adriatic LNG,
2011).
Purpose Regasify 8 billion m3 of gas per annum, about at the 10% of the Italian gas consumption.
Scope Realization of the gravity base structure (GBS), all the facilities placed on the top of GBS, the mooring
dolphins, the off-shore and the on-shore (Porto Viro – Cavarzere – Minerbio) pipeline to connect the
terminal to the national gas distribution.
Contractual
Framework
Two EPC contracts with Aker Kvaerner and Snamprogetti (now Saipem). About 1 billion of Euro
Relevant
Physical
Dimensions
The GBS built with 90.000 cubic meters of concrete and 30.000 tons of steel, is long 180 m and high 47
m and the most part is under the sea level.
The liquefied natural gas is stored in two LNG tanks, with capacity of 125.000 cubic meters everyone,
placed into the GBS structure.
A first pipeline of 76 cm diameter and 40 km long covers 15 Km of sea floor and then carries on for 25
Km onshore.
From here the gas is carried by another pipeline (90 cm diameter and 84-km long) to a tie in point with
the national distribution network near Minerbio (BO). (Adriatic LNG, 2011).
MEGAPROJECT: The Effective Design and Delivery of
Megaprojects in the European Union
SECTION 1 - BASIC PROJECT INFORMATION
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MEGAPROJECT: The Effective Design and Delivery of
Megaprojects in the European Union
SECTION 2 - PROJECT STAKEHOLDERS
17
Stakeholder
Category
Case-Study Comments
(e.g. maturity, previous experiences of stakeholders,
skills, influence on project)
Intern
al
Supply-
Side
Client Adriatic LNG Owner and manager of the terminal and the pipeline up
to Cavarzere station. The company employs about 125
people. (Adriatic LNG, 2011).
Financiers Edison, Qatar Petroleum (QP),
ExxonMobil (XOM), Italian
State.
Sponsors Edison. It obtained all the necessary authorizations for the
realization of the terminal.
Client’s
Customers
Edison 80%, BP 12,5%, Others
8,5% (percentage of the gas
productions).
Edison is the holder of the right of allocation and so it has
a contract “take or pay” with RasGas of 25 years of
duration for the utilization of the 80% of the gas
processed in the terminal. (Quadrino, 2009) and (Delibera
n. 91/02).
The remaining 20%, available for the other gas
companies, has been assigned according to the
procedures defined by AEEG Authority. The 8,5% is
processed on demand. (Adriatic LNG, 2011).
MEGAPROJECT: The Effective Design and Delivery of
Megaprojects in the European Union
SECTION 2 - PROJECT STAKEHOLDERS
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Stakeholder
Category
Case-Study Comments
Intern
al
Supply-
Side
Client’s Owners ExxonMobil 70,7%,
Qatar Petroleum
22%, Edison 7,3%.
QP and XOM are involved together in other joint venture of LNG
terminal. South Hook LNG terminal in UK, Golden Pass LNG
terminal in USA. (Qatar Petroleum, 2010).
Other internal
supply-side
categories (
please specify)
RasGas ExxonMobil and QP own also the company RasGas (ExxonMobil,
2010) that supply the 80% of the LNG for the terminal.
(Quadrino, 2009).
Demand
Side
Principal
Contractor
Aker Kvaerner for
the LNG terminal
and Saipem for the
pipeline.
Aker Kvaerner is a global oil services company that provides
engineering services, technologies, product solutions for the oil
and gas industry. It employs about 18500 people. (Aker
Solutions, 2011).
Saipem is an Italian contractor in the field of infrastructure
construction and maintenance for the oil industry, with
operations on five continents. It employs about 30000 people.
(Saipem, 2012).
MEGAPROJECT: The Effective Design and Delivery of
Megaprojects in the European Union
SECTION 2 - PROJECT STAKEHOLDERS
19
Stakeholder
Category Case-Study
Comments
(e.g. maturity, previous experiences of stakeholders, skills, influence on
project)
Intern
al
Demand
Side
First Tier
Contractors
Acciona
It built the GBS structure (Serina, 2012). It also undertook all of the ancillary
installations for the base camp, including 4500 square meters of offices and
other facilities (Acciona, 2008).
Whessoe
It provided, with an EPC contract, the engineering and design for LNG tanks
and subcontracted the construction. It was responsible for the testing and
commissioning of the tanks after their installation into GBS. (Whessoe,
2010).
Dragados It constructed the top side facilities, and was responsible to their
installation and hook up on the GBS structure. (Serina, 2012).
Ing. E.
Mantovani
It built the Mooring Dolphins at the Arsenale shipyard in Venice (Italia Oggi,
2008) and was involved in the pipeline construction (Penolazzi, 2006).
Max Streicher
and Saipem pipeline construction.
MEGAPROJECT: The Effective Design and Delivery of
Megaprojects in the European Union
SECTION 2 - PROJECT STAKEHOLDERS
20
Stakeholder
Category Case-Study
Comments
(e.g. maturity, previous experiences of
stakeholders, skills, influence on project)
Intern
al
Demand
Side
Second Tier
Consultants
Hyundai Heavy Industries (HHI) It manufactured and supplied the LNG tanks in six
sections. (Hyundai Heavy Industries, 2006).
Siemens It built the module of electric and instrumental
system. (Serina, 2012).
Emtunga It supplied the Living quarters module. (Serina,
2012).
Professional
Services
Providers
Fagioli
It was responsible for the unload, the transport,
the lifting and the positioning of the all modules
and top side facilities on the GBS structure.
(Fagioli, 2011).
MEGAPROJECT: The Effective Design and Delivery of
Megaprojects in the European Union
SECTION 2 - PROJECT STAKEHOLDERS
21
Stakeholder Category Case-Study Comments
External
Public Regulatory Agencies AEEG (Autorità per l’Energia
Elettrica e il gas)
AEEG has the functions of regulation
and control in the sectors of the
electricity and gas (determination of
tariffs and the technical and economic
conditions of access and
interconnection to the networks).
(AEEG, 2012).
Local Government Regione Veneto, Regione
Emilia Romagna, Provincia di
Rovigo, Municipalities.
Both regions approved and was
favourable to the projects.
National Government Ministero Sviluppo
Economico, Ministero
dell’Ambiente.
The Ministero dell’Ambiente issued the
VIA decrees . The Ministero Sviluppo
Economico issued the permissions to
construction.
Private Environmentalists Committees environmentalist Tried to stop the construction of the
terminal.
MEGAPROJECT: The Effective Design and Delivery of
Megaprojects in the European Union
Stakeholder Relationship Maps
22
Adriatic LNGTermi nal + Pipeline
(Terminal-Cavarzere)
ExxonMobilQatar
Petroleum Edison
Qatar State
RasLaffan LNG
Transalpinadi Energia
EDFGruppo Tassara
Privates and banks
RasGas
Aker KvaernerTerminal
SaipemPipeline
AccionaGBS
Dragados Top side facilities
WhessoeLNG tanks
Hyundai Heavy IndusriesLNG tanks
Ing. E. MantovaniMooring Dolphins
and Pipeline
Max StreicherPipeline
BP
Others
Supplies 80%
ConstructionConstruction
Owns 7,3%
Owns 61,3%
Owns 19,4%
Owns 10%
Owns 30%
Contract
Construction
Supplier
Design and construction
ConstructionConstruction and installation
Owns 50%
Owns 70%
Owns 70,7% Owns
22%Sell80%
Sell 12,5%
Sell 8,5%
Edison StoccaggioPipeline (Cavarzere-
Minerbio)
owns
ContractOthers
Supplies 20%
Floating
Owns9,3%
Contract
owns owns
owns
Siemens Module of
electric system
Supplier
EmtungaModule of living
quarters
Supplier
Foreign investors:
• Own the plant
• Supply the gas
• Sell the gas
MEGAPROJECT: The Effective Design and Delivery of
Megaprojects in the European Union
MEGAPROJECT External Stakeholder Attitude
Analysis
23
External
Stakeholder
External Stakeholder’s Attitude to this
Project
External Stakeholder’s Influence on
project
Impact of Project on External
Stakeholder
Region of Veneto It was favourable to the realization of the
terminal and the pipeline in its territory.
(Regione Veneto, 2006).
In the VIA decree of 1999 for the
terminal and in 2003 for the pipeline it
obtained that it takes great care of the
environment and its restoration during
the construction of the terminal and
pipeline. (Decreto di VIA, 2003) and
(Penolazzi, 2005).
Region of Emilia-
Romagna
It was favourable to the realization of the
pipeline in its territory. (Regione Emilia-
Romagna, 2003).
In the VIA decree of 2003 for the pipeline
it obtained that it takes great care of the
environment and its restoration during
the construction of the pipeline.
(Decreto di VIA, 2003).
Province of Rovigo The Province opposed to the terminal and
the pipeline trying in any way, in the
courtroom, to stop the project. (Chinaglia,
2006).
It first appealed to the TAR of Lazio and
then turned to the State Council against
the acts of authorization. It lost in both
the judgements in June 2005 and July
2006.
(TAR del Lazio, 2005) and (Consiglio di
Stato, 2006).
In February 2008 there was
the signing of the agreement
between AdriaticLng, Consvipo
and the Province of Rovigo
that put an end to the battles.
This agreement established a
environmental compensation
for the territory. (Consvipo,
2008).
MEGAPROJECT: The Effective Design and Delivery of
Megaprojects in the European Union
MEGAPROJECT External Stakeholder Attitude
Analysis
24
External
Stakeholder
External Stakeholder’s Attitude to this
Project
External Stakeholder’s Influence on
project
Impact of Project on External
Stakeholder
Enviro
nm
entalists
Since 1998 until the entry into operation
of the terminal there was the opposition
of the environmentalists and committees
of citizens against the terminal. (Stoppa,
2009).
the negative effects on the environment
risks of accident
any benefit on the employment plan and
stops the process of tourism
development.
The committee Basso-polesano
recoursed to the TAR of Lazio and then to
the State Council against the acts of
authorization. It lost in both the
judgements in June 2005 and July 2006.
(TAR Veneto, 2006).
In 2006, some environmental groups
including the Committee Basso-polesano
appealed to the TAR of Veneto against
the acts of authorization and the TAR of
Veneto dismissed this appeal on October
2006. (TAR Veneto, 2006).
Mu
nicip
alities
In 2006 there was the agreement
between Edison and the municipalities
for the environment compensations. The
overall amount was 1,2 million euro. The
municipalities committed to facilitate the
execution of work, releasing permits not
included into urban conformity required by
Edison, and to renounce to legal action. All
the municipalities expressed their
agreement with resolution of their
councils. (Comune di Berra, 2006).
In 2006 the municipalities crossed for
the section of pipeline Cavarzere -
Minerbio obtained by Edison the
environmental compensation for the
constraints burdening in their
territories. The municipalities of the
on-shore pipeline section of Porto Viro
- Cavarzere (the municipality of Porto
Viro and Loreo) was compensated,
together with Consvipo, by Adriatic
LNG after the agreement of
20.02.2008. (Consvipo, 2008).
MEGAPROJECT: The Effective Design and Delivery of
Megaprojects in the European Union
Client Project Team Size &
Structure
Contractor Project Team
Size and Structure
Sub-Contractor Project
Team Involvement
Project Tools and Techniques Please √ if present, x if absent , leave blank if unknown
Life-Cycle Costing Approaches □
Stakeholder Involvement □
Building Information Modelling (BIM) □
Project Management Software □
Relationship Management Tools □
Project Knowledge Management Tools □
Lessons Learnt Transfers □
Team Building Tools □
Competency framework □
Other Tools and Techniques or More Information
SECTION 3 - PROJECT MANAGEMENT
MEGAPROJECT Project Management
MEGAPROJECT: The Effective Design and Delivery of
Megaprojects in the European Union
Risk Management Processes Present (describe below) □Not Present □ No Information □
HR Management Processes Present (describe below) □Not Present □ No Information □
Procurement Management Processes Present (describe below) □Not Present □ No Information □
Integration Management Processes Present (describe below) □Not Present □ No Information □
Scope Management Processes Present (describe below) □Not Present □ No Information □
Time Management Processes Present (describe below) □Not Present □ No Information □
Cost Management Processes Present (describe below) □Not Present □ No Information □
Quality management Processes Present (describe below) □Not Present □ No Information □
Communications Management Processes Present (describe below) □Not Present □ No Information □
SECTION 3 - PROJECT MANAGEMENT
MEGAPROJECT Project Management
MEGAPROJECT: The Effective Design and Delivery of
Megaprojects in the European Union
MEGAPROJECT Project Performance Aspects of Performance Concerned with Doing the Project Right
27
Original Targets and changes to targets Actual Achievements Against Targets
Performance relating to time The project of the LNG terminal of Rovigo, started in 1998, during the years has been subjected to postponements of the coming into operational of the terminal.
- In November 2000, when the managers of the then-company Edison Gas (after Edison LNG and now Adriatic LNG) introduced the project to the territory involved, They stated that the objective was to complete the terminal within the end of 2004. (Il Gazzettino - Cronache di Rovigo, 2000).
- In November 2003, when there was the sign of agreement between Qatar Petroleum, ExxonMobil and Edison for the development of the LNG terminal project, the startup of the terminal was scheduled for 2007. (Business Wire, 2003).
- In 2005, just before the starting of the GBS construction in Spain (second quarter of 2005), the coming into operation of the terminal was expected into 2008. (IEFE-Bocconi, 2005).
- At the beginning of 2006 the GBS was scheduled to be complete i n the fi rst quarter of 2007. While the ter minal was scheduled to leave for Ital y, after the installati on and hookup of the all module, in the first quarter of 2008. (ExxonMobil, 2006). The coming into operati on of the ter minal, after the commissioning, was scheduled in October 2008 ready for the beginning of the ther mal year as
forecasted in the 2005. (Assomineraria, 2006).
- One year later, exactly in the second quarter of 2007, at the inauguration of LNG Train 5 of RasGas, the coming into operation was scheduled into 2009. So this forecast has revealed correct. (Assomineraria, 2007).
To sum up:
Years Coming into operation
Nov 2000 End 2004
Nov 2003 End 2007
Apr 2005 End 2008
Apr 2007 End 2009 (respected)
Regarding the pipeline Cavarzere-Minerbio, owned by Edison Stoccaggio, the forecast of the end construction (December 2007), made in June 2006 thus some month before the start of the construction sites, was respected. (Comune di Berra, 2006). - The main authorization was issued within 2004 to Edison LNG (now Adriatic LNG).
- In November 2003 QP and ExxonMobil agree to participate in the development of the Terminal with Edison. (RasGas, 2011).
- In summer 2004 Aker Kvaerner was awarded by a EPC contract for the realization of the terminal. (ENR.com, 2008). In July 2004 was awarded Snamprogetti (now Saipem) for the realization of the two sections of pipeline. (Edison Stoccaggio, 2012).
Pipeline:
- Cavarzere – M inerbio: the pipeline construc tion started on October 2006. In October 2007 there was the constructi on compl etion. In November and December 2007 there was the completion of testing and pre-commissioning and the Gas-in whil e the land recover y finished on Mar ch 2008. On Jul y 2008 the pipeline was connected to the national gas distribution networ k. (Edison
Stoccaggio, 2012).
- Terminal – Cavarzere: the work started in September 2005. (Penolazzi, 2006). Because of the seizure of the man-made island for one years the work didn’t respect the delivery times. The finished of the work should have been about May or June 2008 given that after September 2008 the terminal arrived and was to connected to this pipeline.
The Terminal:
- In May 2005 was setup Adriatic LNG By QP, ExxonMobil and Edison (RasGas, 2005) and started the construction of the terminal at the dry dock of Algeciras in Spain. (Adriatic LNG, 2011).
- The construction tanks was completed at the beginning of November 2006 in South Korea. Then the two tanks was unload on the ship and transported in Spain. (Hyundai Heavy Industries, 2006). The tanks arrived at the dry dock of Algeciras at 12.12.2006. In April 2007 the tanks was installed into GBS. (Fagioli, 2011).
- In July 2007 the construction of the GBS structure with inside the LNG tanks was completed. (Serina, 2012).
- The construction of the all top side facilities started on June 2006 and was completed on September 2007 at the dry dock of Cadiz (Spain). (ACS, 2006).
- The installation and hook up of the all facilities and started on July 2007 and finished in March 2008. (Fagioli, 2011).
- In September 2008 the terminal arrived in the Adriatic Sea and it was ballasted, connected to the pipeline and there was the installation of the mooring dolphins. (Adriatic LNG, 2011). The mooring dolphins was constructed between the beginning of 2007 and September 2008. (Italia Oggi, 2008).
- In August 2009 started the commissioning with the mooring of the first LNG carrier. (Esso, 2010).
- In October 2009 there was the inauguration of the terminal. (Esso, 2010).
Performance relating to cost Regarding to the costs associated to the terminal during the years they are increase.
In November 2000 the managers of the then-company Edison Gas (after Edison LNG and now Adriatic LNG) stated that the investment was about 450 million of euro for the terminal. (Il Gazzettino - Cronache di Rovigo, 2000).
In the resolution of the CIPE of 2001 the investments was estimated in 455,98 million of euro. The next year with the second resolution of CIPE the cost increased to 585,519 million of euro. In the last resolution of CIPE in 2003 the cost of the terminal raised to 615,72 million of euro. (CIPE, 2001,2002,2003).
In 2004 the EPC contract awarded was of 900 millions of Dollars (ENR.com, 2008) and some months before was awarded the FEED and the detailed design for about 70 million of Dollars (Aker Kvarner, 2004).
The Terminal:
- In Januar y 2004 was awarded to Aker Kvaer ner the contract to perfor m Front-End Engineering Des ign (FEED). The FEED contract was worth around 21 mil lion of Dollars (Aker Kvaerner, 2004). In June 2004 Aker Kvaerner has been awarded by the then- company Edison LNG to conduct the detail ed design and planning ac ti vities. Thi s contract was worth about 50 milli on of doll ars
(Aker Kvarner, 2004). At the end Aker Kvaerner was awarded by a 900 million of dollars EPC contract associated with development of the LNG terminal. The contract consists of engineering, procurement and construction management of the concrete gravity based structure, LNG storage tanks and topside regasification facilities (ENR.com, 2008).
- Aker Kvaerner subcontracted the construction of the GBS to Acciona for 300 million of euro. (Acciona, 2008).
- Aker Kraerner subcontracted the design and construction of the LNG tanks to Whessoe for 200 million of euro. (Whessoe, 2010).
The pipeline:
- Snamprogetti (now Saipem) subcontracted the construction of the Terminal-Cavarzere pipeline for 61 million of euro. (Penolazzi, 2006).
Performance related to achieving specification
Years Coming into operation
Nov 2000 End 2004
Nov 2003 End 2007
Apr 2005 End 2008
Apr 2007 End 2009 (respected)
Performance relating to time
Performance relating to cost
• In November 2000 the managers of the then-company Edison Gas (after Edison LNG and now Adriatic
LNG) stated that the investment was about 450 million of euro for the terminal. (Il Gazzettino - Cronache
di Rovigo, 2000).
• In the resolution of the CIPE of 2001 the investments was estimated in 455,98 million of euro. The next
year with the second resolution of CIPE the cost increased to 585,519 million of euro.
• In the last resolution of CIPE in 2003 the cost of the terminal raised to 615,72 million of euro. (CIPE,
2001,2002,2003).
• In 2004 the EPC contract awarded was of 900 millions of Dollars (ENR.com, 2008) and some months
before was awarded the FEED and the detailed design for about 70 million of Dollars (Aker Kvarner, 2004).
Size increased from 4 billions to 8 billions!
MEGAPROJECT: The Effective Design and Delivery of
Megaprojects in the European Union
MEGAPROJECT Project Performance Aspects of Performance Concerned with Doing the Project Right
28
Stakeholder or
Stakeholder Grouping
Original Aims of Project Involvement and Changes
to these Aims
Achievement of these Aims
Province of Rovigo
and Environmentalist
Stop the project. (Chinaglia, 2006). Lost their battle at the civil court
(Consiglio di Stato, 2006) the project has
been completed.
Region Veneto and
Emilia-Romagna
They asked that the project was less invasive for
the environment and asked for the
environmental monitoring plan during and after
the construction. (Decreto di VIA, 2003).
Their requests was accepted. (Decreto
di VIA, 2003).
Aker Kvaerner Realise the first offshore LNG terminal in the
world to get the know-how for the next project
in this sector.
It realized the terminal.
Edison Enter in the new Italian market of the LNG and
to have a good price the gas for its customers.
80% of the gas processed sold to Edison
for 25 years. (Quadrino, 2009).
QP and ExxonMobil Realize LNG terminal in the world to sold the
LNG processed in their liquefaction trains and so
enter in the regasification business. Ensures a
presence in the whole LNG value chain from gas
production through liquefaction, shipping and
LNG regasification. (RasGas, 2011).
The terminal came into operation.
The LNG arrive from their liquefaction
trains. (Qatar Petroleum, 2010).
MEGAPROJECT: The Effective Design and Delivery of
Megaprojects in the European Union
MEGAPROJECT Project Environment
Legal and Regulatory Environment
29
Legal and
Regulatory
Project
Environment
(regionally,
nationally and
Europe wide)
The environmental compensations to the municipality and local authorities crossed by the two sections of pipeline was possible because of
the law of August 23, 2004 article 1 paragraph 5 (Legge, 2004). In the first part of pipeline Porto Viro - Cavarzere owned by Adriatic LNG
with agreement signed in 2008 were compensated municipalities, the Park of Delta and Consvipo (Consvipo, 2008). In the second part of
pipeline from Cavarzere to Minerbio owned by Edison Stoccaggio with the agreement of 2006 were compensated the remaining
municipalities involved (Comune di Berra, 2006).
Another law impacting on the project was the Article 27, comma 2 of 12.12.2002 n. 273 and the subsequent deliberation n. 91/02 and n.
90/03 of AEEG (Autorità per l’Energia Elettrica e il Gas) that acknowledged this law. The resolution 91/02 of the AEEG established the
condition to the priority access for the new LNG terminal in Italy. This is an important decision that allows to the companies of the sector
to have rules to make investment decisions. The main rules of this resolution establish that is allocated the priority access to the companies
that fund the construction of the new terminals in Italy. To this companies is reserved the 80% of the terminal capacity for 20 years from
the start-up of the plant. The tariffs is traded with the owner of the plant. The tariffs must be communicated to the authority (AEEG) that
publishes them. (Delibera n. 91/02).
On 23.05.2000 was enacted the legislative decree n.164/2000 about the liberalization of the internal market of natural gas in Italy, crucial
for the future construction of terminals by private companies. (Legge, 2000).
The liberalization of the gas market began at European level by Directive 98/30, then updated and replaced by 2003/55 that pursued the
objective of creating a single European market free and competitive. In Italy, the opening to the free competition began with the legislative
decree 164/2000. The Italian gas market since its inception has been characterized by vertically integrated monopoly of ENI, with the
exception of the distribution, where, although the leader was Italgas, a subsidiary of ENI, the market shares have always been very
fragmented. When the decree (164/2000) opened the market to competition, he did so by focusing on Upstream chain, going to affect
directly the existing monopoly. The monopoly of ENI was then hit by placing a double cap. From 01.01.2002, in fact, no company could
claim a share of gas supply in Italy (production + imports) over 75% of total consumption (excluding own consumption). This roof was
reduced by 2% every year to get to the limit of 61% in 2009 and 2010. Furthermore, no company can sell to end users more than 50%.
(AmbienteDiritto, 2004) and (Legge, 2000).
Specific Legal
and Regulatory
events
impacting on
the project
The declaration of public utility and urgency for the pipeline Porto Viro - Cavarzere - Minerbio , with legislative decree no.190 of 2002, of
the works allows the realization and operation of strategic infrastructure for energy supply and all the activities envisaged in the approved
project. It is issued with the agreement State-Regions about the location. Local authorities provide to the necessary safeguards for the
areas involved and the related range of respect. The project will then have to obtain the decree of environmental compatibility. So the
main thing is that the local authority have not the power to stop the realization of the project. (Legge, 2002).
• Italian and Regional Laws
• Ask for the authorization
• Modify the project as much as
possible to satisfy as many
stakeholders in possible
• Obtain the authorization
MEGAPROJECT: The Effective Design and Delivery of
Megaprojects in the European Union
Political Environment
30
Political Project
Environment
• In Italy about 92.5% of gas consumption comes from foreign countries.
• The construction of new LNG terminals is strategic choice and allows Italy to diversify
its sources
• Italy thus would decrease its heavy dependence on Russia.
Specific Political Events
impacting on the
project
In January 2006 and 2009 there was the crisis between Russia and Ukraine, which also
affected Europe and Italy since the gas arriving from Russia passes for 80% through the
Ukrainian territory to which Russia pays transit fees.
Economic Project
Environment
The Comitato interministeriale per la programmazione economica, CIPE, establishes the
address to the national economic policy and the general guidelines for the elaboration of
the national economic program.
The CIPE in 2001 (resolution no. 41 of 2001) with its resolution authorized the stipulation
of the program contract between the Ministero del Tesoro, and the then-company Edison
Gas regarding the investment for the construction of an off-shore terminal.
The incentives were calculated based on the costs of industrial investment and industrial
research activities.
MEGAPROJECT: The Effective Design and Delivery of
Megaprojects in the European Union
MEGAPROJECT Project Key Events and
Activities Timeline 2006 -2009
31
Events and activities relating to
project stakeholders
Events and activities relating
to project management
Events and activities relating
to project performance
Events and activities relating to
project environment
Dec 1999 VIA decree for the Terminal with
regasification capacity of 4 billion
m3 per year after the favorable
opinion of the Region of Veneto
(Decreto di VIA, 1999).
May 2000 The legislative decree
n.164/2000 about the
liberalization of the internal
market of natural gas in Italy,
crucial for the future
construction of terminals by
private companies. (Legge,
2000).
Mar 2002 The declaration of public utility
for the pipeline Porto Viro -
Cavarzere – Minerbio.
(Penolazzi, 2005).
Dec 2002 The law n. 273, article 27,
comma 2 (Articolo 27 comma 2)
and the subsequent deliberation
n. 91/02 and n. 90/03 of AEEG
(Delibera n. 91/02).
Mar 2003 Region Veneto (Decreto di VIA,
2003) and Region Emilia-Romagna
(Regione Emilia-Romagna, 2003)
expressed favourable opinion for the
pipeline.
MEGAPROJECT: The Effective Design and Delivery of
Megaprojects in the European Union
MEGAPROJECT Project Key Events and
Activities Timeline 2006 -2009
32
Events and activities relating to project
stakeholders
Events and activities relating to
project management
Events and activities
relating to project
performance
Events and activities relating to
project environment
Oct 2003 VIA decree for the Pipeline. (Decreto di
VIA, 2003).
Nov 2003 The CIPE issued a third and last
resolution. The decree
established a contribution to
Edison LNG for the work
amounted to 66,57 million of
euro. (CIPE, 2001,2002,2003).
Nov 2003 QP and ExxonMobil agree to
participate in the development of the
Terminal with Edison. (RasGas, 2011).
Summer
2004
Aker Kvaerner was awarded by
a EPC contract for the
realization of the terminal.
(ENR.com, 2008).
Jul 2004 In July 2004 was awarded
Snamprogetti (now Saipem)
for the realization of the two
section of pipeline. (Edison
Stoccaggio, 2012).
Oct 2004 VIA decree for the increase of the
terminal regasification capacity from 4 to
8 billion m3 per year. (Penolazzi, 2005).
May 2005 Set up of Adriatic LNG By Edison, QP
and ExxonMobil. (RasGas, 2005).
MEGAPROJECT: The Effective Design and Delivery of
Megaprojects in the European Union
MEGAPROJECT Project Key Events and
Activities Timeline 2006 -2009
33
Events and activities relating to project
stakeholders
Events and
project
management
Events and activities
relating to project
performance
Events and activities relating to project
environment
May 2005 Construction start of the
terminal at the dry dock
of Algeciras in Spain.
(Adriatic LNG, 2011).
Jun 2005 The Province of Rovigo (TAR del Lazio, 2005)
and the Environmentalists (TAR Veneto, 2006)
lost the cases at the Tar of Lazio.
Sep 2005 Construction start of the
pipeline Terminal –
Cavarzere. (Penolazzi,
2006).
Jan 2006 Crisis between Russia and Ukraine,
which also affected Europe and Italy
since the gas arriving from Russia
passes for 80% through the
Ukrainian territory. The European
gas companies reported a drop in
pressure in the pipelines of its
national network. (Croce, 2011).
Jul 2006 The Province of Rovigo (Consiglio di Stato, 2006)
and the environmentalists (TAR Veneto, 2006)
lost the cases at the State Council.
Aug 2006 The municipalities of the section of pipeline
Cavarzere -Minerbio obtained by Edison the
environmental compensation. (Comune di Berra,
2006).
MEGAPROJECT: The Effective Design and Delivery of
Megaprojects in the European Union
MEGAPROJECT Project Key Events and
Activities Timeline 2006 -2009
34
Events and activities relating to
project stakeholders
Events and
project
manageme
nt
Events and activities relating to project
performance
Events and activities relating to
project environment
Oct 2006 Construction start of the Pipeline Cavarzere –
Minerbio. (Edison Stoccaggio, 2012).
Feb 2008 The municipalities of the pipeline
section Porto Viro - Cavarzere was
compensated, together with
Consvipo, by Adriatic LNG.
(Consvipo, 2008).
Mar 2008 Construction end of the terminal at the dry
dock of Algeciras in Spain. (Fagioli, 2011).
Mar 2008 Construction end of the pipeline Cavarzere –
Minerbio. (Edison Stoccaggio, 2012).
May 2008 Probable construction end of the pipeline
Terminal – Cavarzere.
Sep 2008 The terminal arrived in the Adriatic Sea. Then it
was ballasted, connected to the pipeline and
there was the installation of the mooring
dolphins. (Adriatic LNG, 2011).
Jan 2009 New Crisis between Russia and
Ukraine. There was a new stop
flow of gas to Europe. (Il
Giornale.it, 2009).
Aug 2009 Started the commissioning with the mooring
of the first LNG carrier. (Esso, 2010).
Oct 2009 Inauguration of the terminal. (Esso, 2010).
MEGAPROJECT: The Effective Design and Delivery of
Megaprojects in the European Union
MEGAPROJECT Project Key Events
35
• Feasibility study: 1998
• Project final approval: 2003
• Start of GBS construction: 2005
• Module installation engineering: from beginning 2005
• LNG Tanks arrival on site: December 2006
• LNG Tanks installation: January – May 2007
• Modules installation: July2007 – May 2008
• Basin flooding: 20th May 2008
• GBS sailaway: 30th August 2008
• Sailing duration: 15days
• GBS in final position on Adriatic sea bed:18th September 2008
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