Natural Gas in Italy: Features and Perspectives in Light of Russia’s War in Ukraine
Italy is one of the largest gas consumers in the European Union. Today, natural gas faces uncertainty on both the demand and the supply side. Climate policy, market competition and geopolitical developments have been conducive to some reconsideration about future gas demand. However, it still represents the quickest way to phase out more polluting energy sources and remains the more reliable source in selected sectors, such as “hard-to-abate” sectors, in the medium term. On the supply side, Italy is considering reviving its domestic production and filling gas storage facilities ahead of the winter months. Further, it has attempted relentlessly to secure new imports to diversify away from Russia – especially adding imports from Mediterranean countries. The new energy landscape caused by Russia’s war in Ukraine may result in a reconfiguration of gas flows which could position Italy as a transit hub also for decarbonised gases (e.g., hydrogen).
Paper prepared in the framework of the IAI-Eni Strategic Partnership, September 2022.
1. Demand side: From the golden age to uncertainty
1.1 Evolution and state of the art
2. Supply side: Decline of domestic output and high import dependency
3. Italy’s diversification plans: The role of Mediterranean countries
3.3 East Med
4. Reconfiguration of European gas flows in Europe and decarbonisation
4.1 New gas flows in the short and medium term: Opportunities and challenges
4.2 Issues related to the decarbonisation pathways