MNI: Italy Seeks Allies To Change EU Energy Pricing-Officials

Italy is seeking to forge a common front with other Mediterranean nations to argue for the European Union to overhaul the bloc’s energy pricing systems and to move towards joint purchases and storage of natural gas, sources close to Prime Minister Mario Draghi told MNI.

Draghi will meet with his Spanish, Portuguese and Greek counterparts in Rome and via video-link on Friday to agree positions ahead of next week’s European summit including calls for changes to EU energy pricing rules which currently link the price of renewables and other energy sources to those of natural gas, the sources said.

Italy, which currently imports 41% of its natural gas from Russia, expects the European Commission to announce measures moving towards joint purchases and a common storage system for natural gas, something which Rome argues will reduce prices. The European Commission in December proposed rules allowing EU countries to jointly buy strategic reserves of gas.

The Mediterranean countries will also stress their potential role in the construction of new gas pipelines or supply routes from countries like Algeria, Turkey or Qatar, the Italian officials said. The CEO of Italy’s Snam Marco Alvera has already said that the company is considering a new gas pipeline from Barcelona to Italy if the Midcat pipeline between France and Spain falls through, the officials noted.

Spain already has two gas pipelines from Algeria, and its eight regasification plants provide one of the largest such capacities in the EU. A new pipeline to Italy would allow it to increase purchases from Algeria or of seaborne liquified natural gas.