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    Gazprom to increase deliveries to Eni: press

Summary

Italian gas supplies have returned to pre-Nord Stream maintenance levels.

by: Callum Cyrus

Posted in:

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

Gazprom to increase deliveries to Eni: press

Eni expects gas deliveries from Russia's Gazprom to rise to around 36mn m3/d in coming days, up from 21mn m3/d in recent weeks, Reuters reported July 21.

The news comes as Gazprom relaunched gas flow via the Nord Stream gas pipeline to Germany on July 21, following a 10-day routine maintenance turnaround.

With the return of Siemens' compressor station turbine from Canada now on the horizon, European customers are waiting to see whether capacity through Nord Stream will gradually return toward its maximum 55bn m3/yr throughput. Italy's gas deliveries remain at around 50% of the 63mn m3/yr it usually receives.

The pipeline is currently running at around 40% capacity as it was prior to the maintenance shutdown. Gazprom has blamed technical difficulties, including the failure by Siemens to bring the turbine back to Russia on time. Canada has since eased sanctions to allow the turbine to be recovered, and a recent report by Russian daily newspaper Kommersant speculated it could be back in operation by the end of this month, or in early August.

Italian prime minister Mario Draghi said June 24 that Russia's share of Italy's gas requirement had dipped to 25% from 40% last year, according to Reuters. The nation is increasingly turning to Algeria, which has agreed to deliver an additional 9bn m3/yr of gas from 2023 on top of the 22.5bn m3/yr it supplied last year, as well as fellow gas producers Azerbaijan, Mozambique, Republic of Congo, Qatar and Angola. In the short-term, Rome has looked to demand-side measures, with the EU lining up a 15% reduction in gas use between August and the end of the heating season.

When deliveries from Sonatrach increase next year, Algeria is expected to surpass Russia as Italy's leading gas supplier. As Algerian upstream's biggest foreign investor, Eni is expected to drive additional investment into Algerian production basins. This should help Sonatrach protect gas flows to other European customers such as Spain, according to Politico.