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Thursday, February 16, 2006

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Italy set to tap into strategic gas reserves
2/16/2006
 

          ROME, Feb 15 (Xinhua): Italy is expected to tap into its strategic gas reserves Tuesday or Wednesday because of rising demand caused by continued cold weather and chronic reductions in natural gas arriving from Russia, Italian News Agency said yesterday.
Italy has some 5.1 billion cubic meters of gas in its strategic reserves and government experts forecast that at least two billion will be needed to deal with the current shortage.
Russia delivered 12.2 per cent less gas than Italy ordered Tuesday while demand jumped by 22.2 per cent, the result of a 31.5 per cent increase for industrial use, a 24.6 per cent jump for the production of electricity and a 19.4 per cent rise for domestic use.
Italy usually taps into its normal gas reserves during the winter but this year these reserves were significantly depleted because of a major reduction in gas from Russia in January.
Russian gas imports in January fell by an average of 3.7 per cent, with a peak of 23.8 per cent at the start of the month, mostly because of a political flap between Moscow and Kiev.
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.
Italy's gas crisis has spilled into the political arena with the center-left's candidate for premier in April's elections, Romano Prodi, criticising the energy policies of incumbent Premier Silvio Berlusconi.
Italy, Prodi said Tuesday, is the only European country being forced to tap into its strategic reserves even when its neighbors have been subject to similar reductions in gas arriving from Russia. Italian Industry Minister Claudio Scajola repeated Tuesday that the problem was due to the unusual cold and the cutbacks and that the situation should return to normal once winter ends.

 

 
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