Italy is fully diversifying its gas supply: after Algeria, the peninsula will be able to count on aid from Egypt, soon from Angola, Congo, Mozambique… and that’s not the end of it. Who would have believed it just a month ago?
Indeed, on the day of the Russian invasion of Ukraine, Patrick Pouyanne said: that it was impossible for the European Union to do without Russian gas in the short term, on which it was 40% dependent. Fact, the “alternative” producing countries had to confirm this diagnosis very quickly assuming that they did not have the means to quickly compensate for such an amount of gas if the Russian tap closed for some reason.
Nevertheless, the EU took steps – with the aid, albeit self-interested, of the United States find a solution for Russian gas to include the energy weapon in its sanctions against Russia.
Italy, one of the EU’s most dependent on Russian gas, sent its finance minister Luigi di Maio and Eni’s boss an agreement four days after Russian troops entered Ukraine on February 28, four days after Russian troops entered the Ukraine. to supply more gas to its Algerian partner Sonatrach.
Italy is one of Europe’s largest consumers of gas, accounting for 42% of its energy consumption, and importing 95% of its gas. And it relies heavily on Russia, which currently supplies it with 45% of this gas.
Faster than expected from dependence on Russian gas
Since then, Italy’s diplomatic activity has been to ensure its near energy future and exit its extreme reliance on Russian gas has only increased as Prime Minister Mario Draghi has made diversifying its suppliers a priority.
“We no longer want to depend on Russian gas, because economic dependence must not become political submission,” he said in an interview with the daily “Il Corriere della Sera” on Sunday.
He added:
“Diversification is possible and relatively quick to implement, faster than we thought a month ago. †
Eni, the largest foreign energy producer in Africa
For example, after the agreement with Algeria on February 28, which is with Egypt before Easter, Italy is aiming for new agreements: with Congo and Angola this week, and Mozambique in May.
To that end, Mario Draghi would personally go to Luanda, capital of Angola, and Thursday, to Brazzaville, capital of Congo, to sign new supply contracts. On a positive note for Covid, however, the Italian Prime Minister was replaced at the last minute by his Foreign Minister Luigi Di Maio, accompanied by Ecological Transition Minister Roberto Cingolani.
The successes of this intense Italian diplomatic activity on the African continent are a reflection (and the result) of the “excellent relations” that Italian energy giant Eni has built over almost seventy years of presence in Africa. in terms of production and reserves, underlined for AFP Davide Tabarelli, boss of the think tank Nomisma Energia.
Multiple LNG projects underway on the African continent
As for its presence in Africa, Eni, the largest foreign energy producer in Africa, is developing two liquefied natural gas plants in the Republic of Congo that, when fully operational, could supply 5 billion cubic meters of LNG.
Eni also has upstream operations in Angola, where it recently entered into a joint venture with BP. A government source said Angola could supply about 4 billion m3 of LNG per year for several years.
Eni, which discovered Egypt’s massive Zohr gas field in 2015, is developing a floating LNG plant in Mozambique, expected to begin production in the second half of this year and process about 3.4 million tons per year when it will be operational.
Italy, which has five major import pipelines, wants to increase LNG imports and plans to integrate the three LNG terminals it currently operates. The Cabinet intends to purchase two floating storage and regasification units with a total capacity of approximately 10 bcm.
As during the trip to Algeria with Luigi di Maio on February 28, Claudio Descalzi, the boss of Eni, will accompany the Italian delegation to Angola and Congo.
Rome has therefore already concluded agreements with Algeria and Egypt. Algeria, Italy’s second-largest supplier, already contributes about 30% of its consumption. According to Italy’s Eni, the agreement with the Algerian national company Sonatrach will increase gas deliveries through the Transmed submarine gas pipeline to “up to 9 billion m3 per year” by 2023-2024.
According to ENI, the agreement with Egypt could allow up to 3 billion m3 of additional liquefied natural gas to be shipped to Europe and Italy this year.
A diversification that will already cost Italy a heavy debt burden
This diversification of supply sources will not come cheap as Italy plans to buy or lease floating storage and regasification units in order to import more liquefied natural gas.
The spending will weigh on the finances of the euro-zone’s third-largest economy, which is already heavily indebted, experts warn, predicting new taxes on businesses and individuals.
However, the government also hopes to reduce its reliance on fossil fuels by accelerating investment in renewable energy, particularly by reducing bureaucratic barriers to installing wind turbines and solar panels.
The return of anti-waste measures from the first oil shock
Mario Draghi this month challenged his compatriots to convince them to make some sacrifices by acting directly on their individual consumption: “Do we want peace or do we want to turn on the air conditioning this summer”?
For example, the government hopes with “control thermostat” to convince the population of the need to lower the heating in schools and administrations by 1 degree, before taking a symmetrical measure with air conditioning for this summer.
Reminiscent of the “anti-waste” measures that followed the first oil shock in 1974, this measure could save some 4 billion m3 of gas per year, according to the newspaper, or about 14% of the gas emitted from Russia is imported. La Stampa.
(with AFP and Reuters)
