Russia’s Gazprom has reduced gas supplies to Italy, an Eni spokesman said, according to Reuters. Gazprom did not give a reason for the reduction.
“Eni confirms that Gazprom has announced a limited reduction in gas supplies to today of approximately 15%,” an Eni spokesman said, adding that the company was constantly monitoring the situation.
On Tuesday, Gazprom announced it was reducing natural gas flows to Germany through the Nord Stream pipeline by 40% due to necessary equipment repairs, which were delayed. Therefore, gas supplies through Nord Stream will be limited to 100 million cubic meters per day, compared to the planned volume of 167 million cubic meters per day, Gazprom said.
News of reduced gas flows to Germany on Tuesday showed that natural gas prices jumped by 13%. Nord Stream flows rose slightly on Wednesday. But in July, Nord Stream must undergo scheduled maintenance for two weeks. During that time, there will be no gas flow through Nord Stream to Germany, the Gundesnetzagentur said earlier this week.
Italy receives 40% of its gas imports from Russia, equivalent to 29 billion cubic meters, according to Reuters.
Italy is already working to supply gas from alternative suppliers, including Algeria, Azerbaijan, the DRC, Angola and Qatar. Eni is also in talks with Egypt to increase LNG imports. Eni has already struck a deal with EGAS to increase natural gas imports by 3 billion cubic meters per day. The new agreement will increase the capacity to send more LNG to Italy, but it is likely to take up to two years.
Both Germany and Italy told companies last month that they could open ruble accounts, allowing them to continue buying gas from Russia without facing sanctions.
Although no reason was given for the gas cut in Italy on Wednesday, German Economy Minister Robert Habek said Gazprom’s decision Tuesday to reduce gas flows to Germany was politically motivated and not due to technical problems, Gazprom said.
By Julian Geiger for Oilprice.com
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