How are the gas flows between Eni and Gazprom
In 2022 Gazprom sent 11 billion cubic meters of gas to Italy through Eni. Contracts remain in place, but supplies have plummeted. All the details
In 2022, Russia supplied Eni with 17 billion cubic meters of natural gas, of which approximately 11 billion were destined for Italy and the remaining 6 billion for Turkey (through the Blue Stream pipeline in the Black Sea).
This is a significant drop from 2021 volumes, when Italy imported 29 billion cubic meters from Russia, roughly 40 percent of total imports.
THE SALE OF LNG
Eni specified that it did not purchase liquefied gas (LNG) from Russia in 2022. At the level of the entire European Union, however, in 2022 imports of Russian LNG reached 22 billion cubic meters, compared to 16 billion in 2021. It is a significant increase, which testifies that Moscow remains a significant energy supplier for Brussels despite the separation plans. But that is far less than the 155 billion cubic meters of piped Russian gas that the Union received each year before the war in Ukraine began.
The European countries that imported the most Russian LNG last year, even doubling their 2021 volumes, were Belgium and Spain.
HOW THE ENI-GAZPROM CONTRACTS PROCEED
Eni has announced that the long-term gas supply contracts with Gazprom are still in force, even since June 2022 the Russian company has started to reduce deliveries. These reductions are the subject of an arbitration dispute, explains Eni, covered however by confidentiality.
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TABARELLI'S ANALYSIS
Davide Tabarelli, president of the research company Nomisma Energia, wrote in the Sole 24 Ore that the volumes of Russian gas arriving in Italy are considerably lower than in the pre-war period, "but they have never stopped and for the markets this it is important” because it helps to avoid new surges in prices, which have fallen by a lot compared to the record values of August 2022 (almost 350 euros per megawatt hour) while remaining much higher than the average for the period before the invasion of Ukraine.
“In the first three months of 2023”, writes Tabarelli, 1.5 billion cubic meters of gas arrived in Italy from Russia. “If current levels are maintained, it means 6 billion cubic meters for all of 2023, 6 billion, more than we receive from Libya”. A part of the Russian LNG that reaches the Netherlands area also arrives here through the pipeline passing through Switzerland, the Transitgas.
“Even for Moscow, Europe remains the main destination” for gas, notes the economist, given the geographical constraints of the pipelines. In 2022, Russia sent about 15.5 billion cubic meters of gas to China through the Power of Siberia pipeline, compared to a total consumption of more than 366 billion.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/energia/eni-gazprom-contratti-gas/ on Sun, 14 May 2023 14:55:06 +0000.