Ital Gas Storage, a joint venture of Morgan Stanley Infrastructure and Whysol Investments, has secured financing of more than €1 billion to build a 1.3 billion cubic metre gas storage plant in northern Italy.
The transaction involved a syndicate of international banks led by Banca IMI in the role of global coordination and structuring bank, along with the structuring banks Credit Agricole-CIB, Natixis and ING. Six other international financial institutions, Bank of Tokyo- Mitsubishi UFJ, Societe Generale, Banco Santander, BBVA, Helaba and Ubi, have also been involved in the financing structure.
The plant, which is expected to be operational mid-2018, will be built by Saipem and Schlumberger.
On 15 March 2011, after a long approval process, Ital Gas Storage, obtained by Mise a concession, totaling 40 years, for developing a gas storage facility that will be made in the area of the depleted reservoir in Cornegliano Laudense (LO).
The project will have the capacity of exchanging 27 million cubic meters per day with the national gas transmission system (both in injection and withdrawal).
The project was selected as a priority Project of European Common Interest by TEN-E (Trans European Network – Energy) program.
Italy, which is heavily dependent on gas imports, is looking to create a southern European gas hub by adding new capacity. The project will reduce by more than 20% the current deficit in Italy's daily gas withdrawal capacity that exists during the winter.
Ital Gas Storage is more than 90 percent owned by the Morgan Stanley infrastructure fund while investment company Whysol Investments has around 7.5 percent.