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    Gazprom throttles gas flows to Austria, Italy: press


Both countries will suffer from further reductions in Russian gas flows today.

by: Callum Cyrus

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Natural Gas & LNG News, Europe, Liquefied Natural Gas (LNG), News By Country, Austria, Italy, Russia

Gazprom throttles gas flows to Austria, Italy: press

Austria and Italy have both seen a further reduction in gas imports from Russia, just as Gazprom shuts down the Nord Stream pipeline for annual maintenance, Reuters reported July 11.

Gas deliveries to Austria's OMV fell to 30% of its requested volumes on July 11, down from around 50% to 60% in recent weeks. Italian major Eni will today take around 21mn m3 of gas from Gazprom, down from 32mn m3 previously.

While OMV has turned to spot trading to make up the deficit, Vienna is concerned the economy could be harmed by a further surge in gas prices. 

Russia typically meets 80% of Austria's national gas requirement. While the Austrian electricity grid is largely dependent on hydropower dams, natural gas dominates the energy mix in key industries, like steel and paper production, and also underpins municipal heating grids.

Vienna confirmed July 5 that industries and utilities would be instructed to replace gas with oil and other energy sources. The move is intended to protect scarce gas resources, in case Russia cuts the supply to Europe altogether.

Italy, meanwhile, has been considering a state of alert for its domestic gas industry, a move that would trigger a series of demand and supply-side measures. Eni has been looking to shore up alternative sources of imports, particularly in North Africa. A further setback for the Italian major came last week when Libya announced it would reduce gas exports to Italy by 25%. Libya's Tripoli-based government says it needs the gas for local consumption, amid a power crunch that has impacted Libyan electricity stations, according to the Libya Herald.