Drastic drop in Italy's natural gas production
ENI presented the World Oil and Gas Review 2nd edition, which shows a soaring ‘addiction’ to LNG import in Italy
Italy's current gas production dropped to 1/3 compared to 2000: a declining trend which maintained steady figures despite global consumption showed the same global figures.
As reported in the 2nd volume of World Oil and Gas Review 2017, recently presented by Eni which already published the first section about the World Oil industry.
This second volume focuses on natural gas (LNG) and, for the first time ever, - pinpoints San Donato Milanese-based corporation – on renewable energies, essentially providing an overview on the global market as well as in-depth information about our Country.
In 2000 Italy produced 16.6 billion cubic metres natural gas, importing 57.7 billions product to meet overall annual consumption which reaches some 70 billion cubic metres (70.75).
In 2016, annual consumption remained at the same level, still reaching 70 billion cubic metres (70.91), only 5.7 of which were produced in the country, while 65.2 billions were imported.
Meanwhile export figures throughout the whole term were close to zero.
The growing demand of foreign product is seen as a potential risk because of the excessive addiction to other countries, some of which not particularly reliable from a political point of view: for this reason Italy's National Energy Strategy-SEN 2017 outlines a larger diversification in gas sources, through the installation of new regasifacation plant on the domestic territory so as to consent higher LNG consumption and cut pipeline-supplies which envisage stricter and long-term contracts.
In 2016 – still according to World Oil and Gas Review – the first supplier was Russia, with 26.8 billion cubic metres import through gas pipeline, followed by Algeria (19.1 billions), Norway (8.2 billions), Libya (4.8 billions) and finally Croatia (0.4 billions) through pipeline.
Moreover, major LNG supplier, that last year shipped overall 5.5 billion cubic metres product to Adriatic LNG regasification plant of Rovigo, is Qatar, while 0.4 billions, coming from various sources, were discharged at Leghorn-based installation.
Eni's review also gives an accurate picture of the global natural gas market whose demand soared by 2% in 2016, with particular increase in the EU (+5.1%) and Asia (+5.1%), where China recorded +8.6% annual growth.
Global gas production grew by 0.7% versus 2015, due to new liquefaction installations established in Australia.
The USA is still leading the market, although after 10 constantly growing years, particularly fostered by shale gas extraction, 2016 showed 3.2% drop in the domestic production.
EU overall output, dropped by 3%, while Norway maintains stable figures and Russia records a new increase after 2015 slow down.
Finally, - according to Eni – in 2016 global reserves soared by 0.9% since supported by USA, Nigeria and Iraq. However Russia is still ranked first, holding 25% global gas reserves, and 6 OPEC countries are included in the top 10 list holding 35% altogether.