Italy's Eni Reworks Gas Import Deals

摘要

Italian major Eni is making good on its promise in 2014 to renegotiate all long-term natural gas import contracts to bring them in line with current market conditions by this year (WGI Apr.2' 14). In a presentation in London earlier this month outlining strategy to 2019, Chief Executive Claudio Descalzi said Western Europe's biggest gas importer is seeking to boost profits on gas and power midstream operations by reworking the deals, including a reduction in contracted volumes and a revision in pricing. In doing this, Eni aims to "bring more flexibility" to its gas portfolio, Descalzi said. The price and volume renegotiations come amid a general weakening in European gas demand, with renewables output growing and cheap coal more profitable to burn in most power stations. Italian gas consumption rose 7% to 65.5 billion cubic meters (6.33 billion cubic feet per day) last year, largely because of weather-related demand, after falling steadily from just under 83 Bern in 2010.