Italy looks to Libya for gas as Qatar supplies disrupted

Italian Environment and Energy Security Minister Gilberto Pichetto Fratin walks, on the day of the first new cabinet meeting at Chigi Palace, in Rome, Italy October 23, 2022. REUTERS/Remo Casilli

Italy is examining alternative sources of natural gas, including potential additional supplies from Libya, after disruptions to Qatari exports raised concerns over part of the country’s energy imports.

Italian Minister for the Environment and Energy Security Gilberto Pichetto Fratin said Rome is assessing several options to compensate for the loss of liquefied natural gas shipments from Qatar amid escalating tensions in the Middle East.

In remarks to the Italian newspaper Il Messaggero, Pichetto Fratin said Italy is considering liquefied natural gas imports from the United States, as well as pipeline gas from Libya and additional supplies from African producers and Azerbaijan.

The minister said Italy is not particularly concerned about securing replacement volumes. Qatari gas represents around 9 percent of the country’s annual consumption, leaving room for alternative supply arrangements.

Among the options under consideration is gas transported from Libya through existing pipeline infrastructure linking the two countries. Pichetto Fratin noted that certain technical conditions would need to be prepared before additional volumes could be delivered.

According to reports cited by Reuters, Italy is also looking at the possibility of additional LNG shipments from the United States if available, alongside supplies from Mozambique, Algeria and Azerbaijan via pipeline.

QatarEnergy declares force majeure

The search for alternatives follows a decision by QatarEnergy to declare force majeure earlier this week.

The company informed Italian utility Edison that it would be unable to meet contractual obligations linked to five LNG cargoes scheduled to arrive in early April.

QatarEnergy halted production of liquefied natural gas and related products after a missile strike damaged operational facilities in the industrial cities of Ras Laffan and Mesaieed. The company later announced the suspension of several chemical, petrochemical and downstream industrial activities.

Libya seen as a potential alternative

The developments come as concerns grow over the possibility of a prolonged regional confrontation following the ongoing escalation involving the United States, Israel and Iran.

According to the French outlet Afrik.com, African producers, particularly Libya, could play an important role in helping Europe secure alternative supplies of oil and natural gas.

Libya already exports gas to Italy through the Greenstream pipeline linking the Libyan coast to southern Italy. The infrastructure has long been considered one of the most direct energy connections between North Africa and Europe.

Observers note that Libya could provide relatively stable gas flows to European markets, especially as shipping costs and insurance premiums for routes linked to the Gulf region have risen sharply amid the current tensions.

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