Politicians of all colours in the southern region of Apulia have demanded that Rome revoke a decree authorising the construction of a liquefied natural gas (LNG) terminal in Brindisi -- the latest protests against new industrial projects in Italy.

"We have a lot of industry in Brindisi. Why do we need an LNG terminal on top of it? We have already given more to the country than any other region," Mayor Domenico Mennitti said.

The "not in my back yard", or "nimby", syndrome has already cost Italy millions of euros in abandoned industrial deals which could have boosted its sluggish economy.

Caught in a conundrum, Italians pay the highest electricity bills in Europe but have resisted new power facilities because they could pollute the air or damage the landscape -- an unpardonable sin in a country which treasures beauty above all.

Italy is Europe's third-biggest gas market and is hungry for gas to feed its growing demand, which is expected to hit 95 billion cubic metres in 2010 from the current 80 billion.

Energy analysts say the terminal, with a capacity of 8 billion cubic metres, would be vital for meeting demand and diversifying gas supply.

The 390-million euro ($473.3 million) terminal will import LNG -- gas that is super-cooled into liquid form for shipping -- and is scheduled to start up in the second half of 2008.

The project has already suffered delays and last week Italy's biggest utility Enel pulled out, selling its 50 percent stake to its partner, British oil and gas giant BG Group, which is determined to go ahead with the deal.

But Apulia's regional president, communist Nichi Vendola, has vowed to block construction of a terminal he has dubbed a "monster".

Vendola has gained an unexpected support from Brindisi's mayor Mennitti, one of the pillars of Prime Minister Silvio Berlusconi's centre-right party Forza Italia and the former number two figure in the neo-fascist MSI party.

A DISASTER WAITING TO HAPPEN

The planned LNG terminal is due to be built in Brindisi's port next to an existing petrochemical plant, a coal-fired power station and a military storage facility for fuel.

Those who oppose the project, led by environmentalist groups, say the high risk of fires, explosions or other accidents would be an ecological disaster waiting to happen.

Moreover, they say huge gas tankers going to and from the terminal will practically block other activities in the busy port, making the city even more dependant on heavy industry.

Campaigners against the project also say BG has not obtained all the necessary permits to start building the terminal.

Company officials deny the claims and say the project would be a test case for other foreign investors considering big industrial projects in Italy.

"We have all necessary authorisations which we consider valid and we are ready to take all measures, even legal, to defend our interest and claim damages," said Franco Fassio, president of BG Italia and executive director of Brindisi LNG.

"We are going ahead with our project," he said.

NOT IN MY BACK YARD, PLEASE

"We will not allow it! We will chain ourselves to the port gates if that is needed to stop the construction," said Brindisi Province President Michele Errico.

In Italy, where local administrations have the final say in approving major construction work in their area, this is not just an empty threat.

"In this country you cannot build anything any more," said Davide Tabarelli, director of Italian energy research centre RIE. "The nimby factor is one of the reasons why electricity prices in Italy are the highest in Europe."

In another southern region, Basilicata, a major project to supply electricity from Greece to the Naples area via southern Italy had been blocked for years as people from three villages did not want the power lines to run close to their homes.

Italy's ban on cheap nuclear power after the 1986 Chernobyl accident in the former Soviet Union has helped to boost power prices.

Berlusconi, some politicians and scientists have called for nuclear power to be revived, but analysts and industry experts say Italians would be unlikely to agree.

"There is no option of returning to return to nuclear power. We are not able to build a new LNG terminal, we are not able to find a location for a new waste disposal site, let alone nuclear facilities," Tabarelli said.

People in Brindisi say their main problem is that the city is already choking on industrial fumes, blaming air and soil pollution for one of the highest rates of cancer in Italy.

Environmental campaigners say they would not mind if the terminal was built elsewhere.

"We are not against regasification terminals in general," said Doretto Marinazzo, a Brindisi-based activist.

"We are against choosing the port of Brindisi as a site for the construction because there are no conditions for it here."

But elsewhere the situation does not seem to be any easier, with several other terminals planned for other Italian ports still struggling through the lengthy approval process.

Currently, there is only one LNG terminal in Italy and its 3.5 billion cubic metre capacity is too small for the growing demand.