VTTI, an energy storage company, is set to secure a 70% stake in Italy’s primary liquefied natural gas (LNG) terminal, with Snam, the grid operator, maintaining the remaining 30%, according to an announcement by the Milan-listed group.

This deal, subject to regulatory approvals, is expected to be finalized by the year’s end.

Snam, controlled by the Italian government, exercised its pre-emption right to increase its ownership in the Adriatic LNG infrastructure from 7.3% to 30%.

“This operation strengthens Snam’s presence in LNG infrastructure, which is increasingly strategic for the security and diversification of Italy’s energy supplies,” Snam CEO Stefano Venier said, adding the group would support the terminal’s expansion projects.

The deal for the entire terminal would be valued at approximately 800 million euros ($866 million), including debt, according to Reuters.

located about 9 miles (15 km) off the Veneto coastline, the LNG terminal has a regasification capacity of 9 billion cubic meters (bcm) of natural gas per year.

Snam holds stakes in all the remaining LNG terminals currently operating in Italy for a total regasification capacity of about 23 bcm.

Furthermore, plans are underway to establish an additional floating LNG terminal off Ravenna early next year, increasing Italy’s regasification capacity to 28 bcm, equivalent to the gas Italy used to import from Russia via pipeline.