(2015-04-24) Europe’s present approach to natural gas could use some work, the head of Italian international oil and gas company Eni S.p.A. said Wednesday.
Europe’s natural gas markets have been handicapped by a lack of infrastructure, essentially creating many separate segments instead of one united market, CEO Claudio Descalzi told IHS Energy CERAWeek attendees.
The current gas infrastructure flows from the Nordic countries to the south and from Russia toward the Atlantic smoothly, but connections elsewhere are lacking. Things are beginning to get better, he said, but big gains could be made by connecting the natural gas producing regions of Italy and Spain to the consuming markets north of them.
Those new options would allow for more diverse supplies of the fuel in consuming nations.
“We have to find a way to pass from 28 markets into one strong market. We have a good transportation system that is unfortunately not interconnected,” he said.
Europe could also use more connectivity with southern African countries, he said.
“North Africa is already connected. We have to work on the sub-Saharan,” he said. ”Africa will be a source of supply for the world and for themselves.”
Descalzi also shrugged off the prospect that imminent LNG exports from the U.S. to Europe could shake up the continent’s markets in the near future.
“The price is not so attractive,” he said. “It’s much better in the Pacific Basin than the Atlantic one or in Europe.”
Source: Fuel Fix
Photo: ENI’s CEO Claudio descalzi
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