IItaly negotiates with Azerbaijan to secure gas supplies after Iranian strikes on Qatar
IItaly negotiates with several countries, including the US, Azerbaijan, and Algeria, to secure gas supplies after Iranian strikes on Qatar apparently paralyzed its exports for a long time, says Energy Minister Gilberto Pichetto-Fratin.
ranian attacks have knocked out 17% of Qatar's liquefied natural gas (LNG) export capacity, leading to estimated annual revenue losses of $20 billion and jeopardizing supplies to Europe and Asia, the CEO of QatarEnergy reported on Thursday.
'The fact that the LNG plant in Qatar, which was already shut down, was also bombed has had a devastating impact on prices,' Pichetto-Fratin said on Friday at an event in Milan.
Edison (EDNn.MI), the Italian unit of the French energy company EDF, has a long-term contract with QatarEnergy to supply Italy with 6.4 billion cubic meters of gas per year, accounting for nearly 10% of the country's annual gas consumption.
Earlier this month, Qatar had already declared force majeure on gas exports, notifying Edison that it would be unable to meet its contractual obligations for April.
The pause in supplies is likely to be more prolonged after significant damage was inflicted on its gas infrastructure this week, the head of QatarEnergy noted.
Source: Reuters
