By Elvira Pollina MILAN, March 20 (Reuters) - Italy is talking to several countries, including the United States, Azerbaijan and Algeria, to secure gas supplies now that Iranian strikes on Qatar
Italy Negotiates New Gas Supplies as Qatari LNG Exports Halted by Strikes
Italy's Response to Disrupted Qatari LNG Exports
By Elvira Pollina
Negotiations with Alternative Gas Suppliers
MILAN, March 20 (Reuters) - 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.
Impact of Iranian Attacks on Global LNG Markets
Extent of Damage and Financial Losses
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.
Effect on LNG Prices
"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.
Italy's Gas Contracts and Supply Risks
Edison's Long-Term Agreement with QatarEnergy
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.
Force Majeure and Supply Disruptions
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.
Long-Term Outlook for Qatari Gas Exports
The pause in supplies is likely be longer-lasting after its gas infrastructures were hit hard this week, QatarEnergy's CEO said.
Italy and EU Policy on Russian Gas
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)
