Further cuts to Russian gas imports to Italy

| Tue, 02/07/2006 - 04:48

Imports of Russian gas were down again on Monday amid growing protests over the amount of gas-produced electricity Italy exports.

The Italian fuels group ENI reported that the amount of natural gas arriving from Russia was down 8.1%, the same reduction as on Sunday, equal to about 1.6% of what Italy consumes.

Italian gas consumption is expected to rise by 0.7% on Monday, over the previous day, due to the arrival of a new cold front.

According to a report out Monday from IRES, the research group at Italy's largest trade union CGIL, Italy risks gas rationing in ten days' time if it is forced to tap into strategic reserves because of reduced imports from Russia. The risk of possible rationing has led consumer groups to protest over the amount of gas-produced electricity Italy exports at a time of gas shortages.

"While reserves continue to be used to increase the profits of electricity producers, ENEL first among them, families must reduce their household consumption, accept the increase in pollution caused by starting up old power plants which run on 'dirty' fuels and then pay higher energy bills," the Adusbef and Federconsumatori associations said in a joint statement.

"Today more than 50 million kwh of electricity were exported, thus confirming the trend which last week resulted in some 303 million kwh of electricity being exported. This was three times the amount exported in the week between January 16 and 22, when the threat of possible gas shortages became official," the consumer groups added.

After accusing the government of "allowing this absurd situation", the associations asked for a "freeze on electricity exports on all days like today when temperatures are low".

Italy gets just over a third of its gas from Algeria and just under a third from Russia. Other suppliers include Norway and Libya.

Russian gas imports last month fell by an average of 3.7% with a peak of 23.8% at the start of the month, ENI reported last week. The reduction at the start of the month was caused by a political flap between Moscow and Kiev after Russia hiked up what it charges Ukraine for its gas.

Ukraine responded by allegedly siphoning off gas heading to Europe when its supplies were cut back.

Reductions in the gas flow later in the month were due to a long and severe cold snap in Russia and were in line with seasonal cutbacks to meet domestic needs. Although the situation in Italy never became critical last month, the government adopted an emergency decree to reduce gas consumption to avoid shortages.

The measures included authorization to reopen power plants which were closed down two years ago because of environmental concerns about their fuel. The government also recommended a one-degree drop in central-heating temperatures, plus a one-hour reduction in heating times, in public and private buildings.

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