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Bloomberg: ERG Calls Sicily LNG Plant Delays `Unacceptable,’ Sole Reports

By Anthony DiPaola

Feb. 28 (Bloomberg) — ERG SpA called delays in government approval for a liquefied natural gas receiving terminal the Italian refiner plans to build in Sicily “unacceptable,” Il Sole 24 Ore reported, citing Chairman Edoardo Garrone.

The project has already cost 15 million euros ($22.7 million) and has been awaiting approval for three years, Il Sole said.

ERG and Royal Dutch Shell Plc in February 2005 proposed building the facility at Priolo in Sicily. The terminal would have capacity to process 8 billion cubic meters of gas a year.

The partners plan to spend about 500 million euros on the facility and want to begin operations in 2011, ERG said in March 2007. That makes the project a year late and 100 million euros more expensive than originally planned.

To contact the reporter on this story: Anthony DiPaola in Rome at [email protected]

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