The long-term contract between Italian Edison and Gazprom expired in 2020, but was renewed annually until the Italian company decided to terminate cooperation in the spring of 2022 due to Russia’s aggression against Ukraine.
Since January 1, 2023, the Russian monopoly Gazprom does not sell blue fuel to the Italian company Edison, because Gazprom’s customers have decided not to expand long-term cooperation with the Russian side due to the large-scale occupation of Ukraine. This was reported in the La Stampa publication.
It was noted that there is a long-term contract between Gazprom and Edison that expires in 2020, after the contract was extended annually. However, in April 2022, the Italian company announced that it would terminate cooperation with the Russian monopoly due to the Kremlin’s aggression against Ukraine.
According to the CEO of the Italian company Nicola Monti, there will be no more contracts with Russia.
“We have a diversified and independent portfolio that allows us to meet 20 percent of national demand,” he said.
At the same time, Monti believes that the company will be able to completely replace Russian gas in 2-3 years. But from the second half of 2023, Edison will be able to supply liquefied natural gas from the United States to the Italian market if the country has sufficient regasification capacity.
It should be noted that the Italians are among the first countries in Western Europe to significantly reduce gas imports from Russia in 2022. Prior to that, Italy bought 40% of all gas consumed (29 billion cubic meters of 76 billion cubic meters) from Russian Gazprom, according to Bloomberg.
Gasoline is getting cheaper in Europe
On Thursday, January 5th, the price of gas in Europe fell to $700 per thousand cubic meters. This is a new low that has not been updated since September 2021. The main reason is a hot winter, so Europeans have seriously reduced the use of natural resources.
Pricing was also affected by adequate gas accumulation at underground storage facilities in Europe. Thus, according to Tim McPhee, representative of the European Commission, as of January 4, 2023, the storage facilities were filled with approximately 84% gas.
Recall that after the outbreak of an all-out war in Ukraine, Europe continued to get rid of dependence on Russian energy sources. Therefore, from January 1, 2023, Germany no longer receives Russian oil through the pipeline. Previously, Russia accounted for 55% of all gas imports to the country, 50% of coal imports and 35% of oil imports.
same Focus He wrote that after the start of a large-scale war, Russia transported about 20.35 billion cubic meters of natural gas through Ukraine’s GTS. This is the lowest gas transit rate since Ukraine’s independence.
Source: Focus
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