Italy Oil and Gas Report Q2 2012
BMI View: Aside from the country’s well-publicised economic challenges, Italy is at a crossroads in terms of energy market development. The public is rejecting state efforts to revive nuclear strategy, leaving the way clear for gas volumes to march steadily higher – forcing the import bill to keep pace. Domestic oil and gas volumes are significant but under threat, while Italy’s refining system will continue to absorb cash but offer little in the way of returns. The main trends and developments we highlight in Italy’s Oil and Gas sector are: 1.Gas use in power generation is the key to demand growth and consumption looks set to reach 86.6bn cubic metres (bcm) by 2016. Imports are likely to have reached at least 80bcm at this stage. By 2021, the country is set to be a net importer of more than 92bcm per annum, costing potentially some US$40bn. Snam Rete Gas, the Italian gas distribution network, may shortly be either fully or partly spun off from majority owner Eni, as a...