Reabold Resources plc’s investment project of the Colle Santo gas field has taken a step forward with a favourable review from the Italian Government.
FIRST GAS
Located in Abruzzo with two existing drilled and tested production wells, the site holds 65 billion cubic feet of gross 2P reserves, based on a RPS estimate in September 2022.
Colle Santo aims to produce “clean” liquefied natural gas “on a small scale, with near-zero emissions, using 100% renewable electricity”.
LNEnergy Ltd manages and owns 100% of Italian company LNE Srl, which currently has a 90% interest in the field.
LNEnergy has now received a “positive opinion” for its development plan from the Independent Environmental Impact Assessment Commission of the Italian Ministry for the Environment and Energy Security.
Reabold, which has a 46.2% interest in LNEnergy, said that the move marked a “significant milestone” towards final EIA approval and award of the natural gas production concession.
A final investment decision is expected in the coming months ahead of first gas due during 2025.
Gas is targeted at sea and road transportation, while “supporting the Adriatic ecosystem”, and local industry, agriculture and tourism.
Reabold co-chief executive officer Stephen Williams added: “There is strong momentum behind Colle Santo with offtake terms agreed in the HoA with Gunvor and the EPC contract with Italfluid progressing well.
“As one of the largest onshore gas developments in Europe and, at a time when low levels of investment into indigenous resources has left the continent with significant security of supply issues, Colle Santo is a nationally significant project in Italy.
“It is both environmental friendly and strategically and economically valuable, and we are delighted to be able to play a part in producing micro-LNG, providing a much needed transition fuel to the region.”