Draghi: Italy has stockpiled 80% of natural gas reserves

By AP News

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MILAN (AP) — Italy’s push to rapidly reduce its has made the country less vulnerable to an , Premier Mario Draghi said Wednesday, noting that the country has stockpiled 80% of its capacity of gas reserves ahead of winter and is on track to hit 90% by October.

FILE - Italian Premier Mario Draghi waves to lawmakers at the end of his address at the Parliament in Rome, on July 21, 2022. Italy’s push to rapidly reduce its dependence on Russian natural gas has made the country less vulnerable to an interruption of supplies, Draghi said Wednesday Aug. 24, 2022, noting that the country has stockpiled 80% of its capacity of gas reserves ahead of winter and is on track to hit 90% by October. (AP Photo/Andrew Medichini, File)

MILAN (AP) — Italy’s push to rapidly reduce its dependence on Russian natural gas has made the country less vulnerable to an interruption of supplies , Premier Mario Draghi said Wednesday, noting that the country has stockpiled 80% of its capacity of gas reserves ahead of winter and is on track to hit 90% by October.

Draghi told an annual summertime festival in the Adriatic seaside town of Rimini that Italy has reduced its reliance on Russian natural gas from 40% last year to half that by finding new sources in countries from Algeria to Azerbaijan . The fuel is used to heat and cool homes, generate electricity and run factories.

Italy could be completely independent of Russia by fall 2024 if it installs two new regasification plants, he added.

“Our goal of diversifying from Russian gas was fundamental to giving citizens and businesses greater certainly about the stability of supplies,” said Draghi, who resigned last month after key right-wing parties yanked support for his unity government.

He remains in office until a new government can be formed following Sept. 25 parliamentary elections.

Public resistance is growing to one of the planned offshore regasification plants near the industrial port city of Piombino, in Tuscany, and how plans proceed will be a key indicator of whether parties that win the Sept. 25 vote intend to continue Draghi’s path of reducing reliance on Russian energy.

Taking a swipe at right-wing parties that advocate sovereignty, Draghi said energy reliance on “a country that never stopped pursuing its imperial past is the exact opposite of sovereignty.”

His comments come as Russia’s war in Ukraine has driven natural gas prices to record highs, fueling inflation worldwide. Moscow has reduced gas flows to European countries as they try to bolster their reserves for the winter heating season , and fears are rising that deliveries could be cut off completely. That could lead to rationing by companies and push countries into recession .

Germany said Tuesday that its gas storage has reached 80% of capacity but cautioned that Russia's plan to halt flows through the Nord Stream 1 pipeline for three days next week “could temporarily dampen” the effort.

In Italy, Draghi again urged an European cap on natural gas prices, which has faced resistance among other EU member states. He told the audience in Rimini that fears Russia would cut off supplies in reprisal for any price cap were realized nonetheless this summer in periodic shutoffs to countries like Germany, which at the same time continued to pay “exorbitant prices.”

The prime minister also repeated his calls that the price of electricity generated by renewable energy no longer be tied to the higher price of natural gas.

“This relationship doesn’t make sense anymore,’’ he said.

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Author: AP News

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