The US LNG will not solve the Italian problems. Cdp report
Will the European Union have to compete with Asia to grab LNG? Yes, according to a report by the research department of Cdp (Cassa Depositi e Prestiti). Here because
The European Union wants to increase imports of liquefied gas (LNG) to reduce dependence on flows from Russia, its main supplier of hydrocarbons. As a result, Italy is working to enhance its regasification capacity: the Minister of Ecological Transition, Roberto Cingolani, said that the country could acquire an additional capacity of 24 billion cubic meters in the next twelve to eighteen months.
WHAT ITALY DOES ON LNG
The government thus asked Snam, the energy company that manages the Italian pipeline network, to acquire "floating storage and regasification units": these are plants that allow natural gas made liquid to be brought back to its gaseous state before being loaded on the tankers and transported; regasification is necessary for the introduction of gas into the network and its use for heating or electricity.
In recent days, Snam has been awarded a regasification vessel from Golar LNG at a price of 269 million euros.
THE US-EU LNG AGREEMENT
At the end of March, the United States (large exporters of liquefied gas) reached an agreement with the European Union to supply it with 15 billion cubic meters of LNG in 2022, in order to mitigate dependence on Russian fuel. However, these are insufficient volumes to replace those coming from Moscow, which amount to 155 billion cubic meters per year.
In total, Brussels intends to purchase 50 billion cubic meters of liquefied gas. However, in a report dedicated to energy security after the war in Ukraine, the research office of Cassa Depositi e Prestiti writes that "the share that the EU intends to obtain represents […] 10% of current world production and competition with the Asian markets, as well as possible competition within the EU, could make it an energy source that is not completely reliable in terms of continuity of supplies and the impact on energy bills. The historical trend of gas prices at an international level, in fact, shows how supply via pipeline is generally more competitive than supply via ship and how markets that are structurally dependent on LNG, such as Japan, are more attractive than Europe " .
– To learn more, read also: All Biden's promises on US LNG to Europe
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/energia/gnl-stati-uniti-italia/ on Mon, 06 Jun 2022 04:28:08 +0000.