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Message: Eni CEO "serene" over Russia-Ukraine gas impact

Eni CEO "serene" over Russia-Ukraine gas impact

posted on Jan 06, 2009 09:26AM

Eni CEO "serene" over Russia-Ukraine gas impact

http://www.guardian.co.uk/business/f...

(Adds Eni CEO comments, previous ROME )
By Stephen Jewkes
MILAN, Jan 6 (Reuters) - Italy has no reasons for concern regarding its energy supplies over the next few weeks in the wake of the gas dispute between Russia and Ukraine, the chief executive of oil and gas company Eni said on Tuesday.
"We can look at the crisis underway between Russia and Ukraine and the repercussions over the next few weeks on Italy's energy security with serenity," Eni CEO Paolo Scaroni said in a statement read out by a press officer on a conference call.
Scaroni said that since the first gas crisis between Russia and Ukraine at the start of 2006, Eni had put in place a policy of diversifying gas supplies and boosting gas storage facilities. This had given Italy a degree of energy security "in line with and even greater than that of other European countries," he said.
Eni, Italy's biggest oil and gas group which dominates Italian gas imports, owns the whole of Stogit, the company that manages around 98 percent of Italy's gas storage sites.
Earlier an Eni spokesman said Russian gas imports through the TAG pipeline were 90 percent lower compared to normal levels as the gas dispute between Russia and Ukraine intensified.
"Volumes at 10 a.m. (local time or 0900 GMT) were 10 percent of normal volumes," the head of Eni's press office Gianni Di Giovanni said.
Russia's gas dispute with Ukraine has cut supplies to a swathe of European countries, threatening disruption as far west as Italy and Germany.
Earlier on Tuesday Industry Minister Claudio Scajola said he was not worried about gas supplies, adding he had signed a decree on Tuesday to increase imports from other suppliers.
Scajola said Italian gas stocks topped 90 percent of their maximum capacity, ensuring Italy had reserves for "several weeks." He added that Rome was increasing imports from Libya, the Netherlands, Norway, Algeria and Britain.
"It's clear that with some East European countries receiving zero gas the situation has become more serious and it's likely that if it continues for a couple of weeks Italy could have some problems," an Italian gas operator said.
He added however that much depended on the weather and how long the current cold spell continued.
"But even if the situation does continue there's a lot that can be done such as enforcing interruptibility contracts with industrial users and cutting some gas-fired power generation capacity," he said.
Around 60 percent of Italy's power generation capacity is fueled by gas.
Italy, which imports about 87 percent of its energy, imports around 60 million cubic metres a day from Russia.
Russia supplied about 31 percent of gas imports in 2007, according to the Italian electric energy and gas authority. (Reporting by Stefano Bernabei, Antonella Cinelli, Ian Simpson and Stephen Jewkes in Milan; Writing by Stephen Jewkes)
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