Country focus: Slow progress on LNG and renewables bode ill for Italy [Gas in Transition]

Country focus: Slow progress on LNG and renewables bode ill for Italy [Gas in Transition]

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Natural Gas News
Country focus: Slow progress on LNG and renewables bode ill for Italy [Gas in Transition]

Summary

Despite a charm offensive across North Africa, Italy’s slow deployment of new LNG import capacity, continued drought and its slow embrace of renewable energy technologies look likely to expose the vulnerabilities of its energy system this winter. [Gas in Transition, Volume 3, Issue 4] by: Ross McCracken

Italy is one of the most gas-dependent countries in Europe, and, until recently, one of the most dependent on Russian gas imports. In 2021, Italy consumed 75.88bn m3 of gas, of which 72.54bn m3 was imported. Russian gas accounted for 38.3% of total consumption and 40.1% of imports. The country’s import slate changed substantially in 2022, following Russia’s invasion of Ukraine, and will change further this year. Russian gas imports plummeted to 13.99bn m3 last year, while pipeline imports from northern Europe, Algeria and Azerbaijan all rose. While total gas system injections remained on a level similar to 2021 (see figure 1), consumption fell by 10% to 68.7bn m3, according to data from Snam, the country’s gas transmission system operator. This allowed a substantial build in gas stocks, which ended 2022 at 84% full in comparison with 68% at the end of 2021. High prices, warm weather and conservation efforts le...