Italy wants no less than 3 years to switch Russian gasoline imports, minister says

Italy’s Minister for Ecological Transition Roberto Cingolani holds a information convention on the finish of the pre-COP26 local weather assembly in Milan, Italy, October 2, 2021. REUTERS/Guglielmo Mangiapane

ROME, March 16 (Reuters) – Italy will want no less than three years to utterly substitute its gasoline imports from Russia with different power sources, Ecological Transition Minister Roberto Cingolani mentioned on Wednesday.

Rome imports round 30 billion cubic metres (bcm) of gasoline from Russia yearly – some 40% of its complete gasoline imports – and is seeking to diversify its power provides in response to Moscow’s invasion of Ukraine.

Cingolani instructed the higher home Senate that utterly changing Russian gasoline was “potential over a minimal time horizon of three years”.

However he mentioned 20 bcm per 12 months may very well be changed within the “close to to medium time period” by a raft of measures together with elevating gasoline imports from Algeria by 9 bcm and elevating coal and oil-fueled energy manufacturing to switch 3-4 bcm of gasoline.

Different measures included rising energy imports from northern Europe in addition to utilizing round 6 bcm extra liquefied pure gasoline (LNG).

Since Russia invaded Ukraine, Italy has ramped up efforts to safe different gasoline sources, with LNG-rich Qatar a specific focus of consideration.

Italy’s advanced allowing course of has nearly stopped growth of LNG services past three crops at present working which now account for round 20% of every day imports.

Cingolani mentioned floating LNG terminals (FSRU) may very well be put in 12-18 months after receiving permits to offer 16-24 bcm of gasoline. Two onshore terminals, with an general capability of 20 bcm and already permitted, would take 3-4 years.

“To do that we’re checking the standing of the permits,” he mentioned.

Longer-term measures to attempt to plug the hole included doubling capability on the TAP pipeline carrying Azeri gasoline, rolling out 8 gigawatts per 12 months of latest renewable energy capability and doubling home gasoline manufacturing, Cingolani mentioned.

Like different EU member states, Italy has been struggling to curb surging power prices. The federal government goals to approve a brand new package deal on Thursday to assist customers and companies cope. Cingolani instructed parliament Rome deliberate to make use of elevated VAT revenues from increased power payments to chop excise duties on petrol and diesel.

He mentioned talks have been below method on a collection of EU proposals relating to state assist guidelines, clawing again extra income made by power corporations and briefly capping wholesale gasoline costs.

($1 = 0.9091 euros)

Reporting by Gavin Jones, Giuseppe Fonte and Stephen Jewkes, modifying by Giulia Segreti and Elaine Hardcastle

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