Gazprom further cuts flows to Italy by 1/3

Gazprom will further cut gas supplies to Italy by about a third, the country’s energy giant Eni said in a statement on Monday, Bloomberg reported.

Gazprom said it would supply Eni with about 21 million cubic meters of natural gas per day, compared with an average of about 32 million cubic meters per day in recent days.

The Eni group added that it would provide additional data in the event of a new and substantial flow reduction.

The 1/3 cut will further reduce natural gas supplies that have already been cut in half since mid-June. The reduction comes as Italy grapples with drought and heatwaves affecting electricity production and as the country struggles to fill storage for the winter.

Flows of Russian gas to Europe via the Nord Stream 1 pipeline to Germany are set to stop on Monday for scheduled annual maintenance, but European leaders have expressed concern that Russia may permanently cut off gas supplies after maintenance work, in retaliation for sanctions over its invasion of Ukraine.

Italy’s natural gas storage facilities are now about 60% full and the government has introduced measures, including a €4bn loan, to speed up the filling process. Prime Minister Mario Draghi’s government is trying to diversify supplies to reduce dependence on Russian natural gas.

If Moscow stops deliveries altogether, Italy will face recession, Bank of Italy governor Ignazio Visco warned last week.

Source: Capital

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