Italy is Europe’s top LNG importer in July as Rome hedges against volatile market

Europe’s largest LNG importer changed from the Netherlands in June to Italy in July, Bloomberg reported on July 31.

Concerns are mounting over Europe’s gas storage levels with Italian energy giant Eni’s chief executive Claudio Descalzi warning in early July that Europe is heading for a gas volume crunch this winter.

Amid high LNG prices, some European countries such as France and Germany have chosen to let storage levels dip. Germany’s gas storage facilities are at 47%, while France’s are at 56%.

However, Italy has chosen to protect itself against further disruption and external shocks, particularly given that among members of the EU, Italy’s power sector is the most dependent on gas.

Since March, Europe and Asia have been battling to secure scarce cargoes of the super-chilled fuel as LNG importers grapple with disrupted shipments following Iran’s attack on Qatar’s Ras Laffan Industrial Complex and Iran’s closing of the Strait of Hormuz for LNG carriers.

Italian energy firm Edison reported extended force majeure on imports of LNG from QatarEnergy. A total of 24 cargoes scheduled to be delivered to the Adriatic LNG terminal near Porto Levante have now been delayed since the beginning of April.

It represents about 3bn cubic metres of natural gas, which is equivalent to almost half the annual volume covered by Edison’s long-term contract. In May, Edison’s CEO said that it would receive about two-thirds of its contract LNG volumes between 30 to 45 days after any peace deal between the US, Israel, and Iran.

State-controlled Eni is also a long-term buyer of LNG supply from QatarEnergy, with a sales and purchase agreement (SPA) scheduled to begin deliveries in 2026 for up to 1mn tpy of LNG. 

Italy’s decision to hedge against price volatility in the LNG market could also be due to the fact that Italian stockpiles dipped in recent weeks due to heat waves. The country also has strict refill targets in place with fines delivered for not reaching the targets. Italian gas network operator Snam told Bloomberg that is on track to meet 90% of its target.

July marked the first time Italy has topped Europe for LNG imports since ship-tracking data compiled by Bloomberg was recorded, which dates back to 2017.