Milan — Italy is talking to several countries, including the United States, Azerbaijan and Algeria, to secure gas supplies now that Iranian strikes on Qatar appear to have halted its exports for an extended period, Energy Minister Gilberto Pichetto Fratin said.
Iranian attacks have knocked out 17% of Qatar’s liquefied natural gas (LNG) export capacity, causing an estimated $20 billion in lost annual revenue and threatening supplies to Europe and Asia, QatarEnergy’s CEO told Reuters on Thursday.
“The very fact that Qatar’s LNG plant that had been shut down was also bombed had a devastating impact on prices,” Pichetto Fratin said on Friday attending an event in Milan.
Edison, an Italian unit of French power company EDF, has a long-term contract with QatarEnergy for the supply of 6.4 billion cubic meters of gas per year to Italy, nearly 10% of the country’s annual gas consumption.
Qatar had already declared force majeure on gas exports earlier this month, flagging to Edison it would not be able to fulfill its contractual obligations concerning April.
The pause in supplies is likely be longer-lasting after its gas infrastructures were hit hard this week, QatarEnergy’s CEO said.
Pichetto Fratin said on Friday that despite the disruption in supplies from the Middle East, Italy had agreed with the European Union that the bloc should not return to buying its gas from Russia.
Reporting by Elvira Pollina, writing by Alvise Armellini and Francesca Landini, editing by Giulia Segreti and Gavin Jones – Reuters
