ROME, March 27 (Reuters) - Dutch infrastructure group

VTTI and German asset manager IKAV have teamed up to buy a

majority stake in Italy's biggest liquefied natural gas

terminal, VTTI said on Wednesday.

Under the deal, Exxon will sell its 70.7% stake in

the Adriatic LNG terminal, the U.S. oil and gas group said.

QatarEnergy is also divesting its 22% stake in the

infrastructure, according to three sources familiar with the

matter. QatarEnergy was not immediately available to comment.

Europe has increased LNG imports after Russia's invasion of

Ukraine in 2022 drastically curtailed gas coming through

pipelines.

Increased flows of LNG have proven a boon for energy traders

including Trafigura, Gunvor and Vitol, which is a shareholder of

VTTI together with Australia's IFM and Abu Dhabi's ADNOC.

In a sign of the growing relevance of LNG for energy

companies, sources told Reuters on Tuesday that energy trader

Mercuria would hire prominent gas trader Steve Hill, formerly

head of LNG at Shell

SNAM OPTION

VTTI and IKAV did not disclose financial details of the

deal on the Italian terminal, with sources saying the

transaction may value Adriatic LNG at more than 800 million

euros including debt.

Italian gas grid Snam, which currently owns a 7.3%

stake in the infrastructure, now has 45 days to decide whether

to exercise its right of first refusal to increase its stake in

the project.

The chief executive of Snam said in January the group could

increase its stake in the terminal to as much as 30%, boosting

its influence over an asset considered strategic for the

country.

The closing of the transaction for the terminal is expected

in the second half of the year, VTTI said in a statement.

Rothschild advised the two sellers in the transaction, with

Mizuho Securities acting as financial adviser for IKAV and

Natixis Partners Iberia supporting the consortium.

Natixis and Intesa Sanpaolo acted as underwriters for the

acquisition financing facility. Herbert Smith Freehills was

legal adviser to the consortium.

The Adriatic LNG terminal is located about 9 miles (15 km)

off the Veneto coastline and has a regasification capacity of 9

billion cubic metres of natural gas per year.

(Additional reporting by Sabrina Valle in Houston and Andrew

Mills in Doha, writing by Alvise Armellini, editing by Gavin

Jones and Deepa Babington)