Register with us today

and in less than 60 seconds continue your access to:Latest news headlinesAnalytical topics and featuresCommodities videos, podcast & blogsSample market prices & dataSpecial reportsSubscriber notes & daily commodity email alerts

Already have an account?

Log in to register

Forgot Password

Please Note: Platts Market Center subscribers can only reset passwords via the Platts Market Center

Enter your Email ID below and we will send you an email with your password.


  • Email Address* Please enter email address.

If you are a premium subscriber, we are unable to send you your password for security reasons. Please contact the Client Services team.

If you are a Platts Market Center subscriber, to reset your password go to the Platts Market Center to reset your password.

In this list
Natural Gas

LNG to be part of seasonal natural gas storage play in Europe: Snam CEO

Energy | LNG | Natural Gas | Natural Gas (European)

European gas markets: On a knife's edge

LNG | Natural Gas | NGL

Platts LNG Alert

Commodities | LNG | Natural Gas | NGL | Financial Services | Infrastructure & Utilities

Gas Storage Outlook Conference, 18th Annual

Energy | Natural Gas | Natural Gas (European)

Danish Tyra East gas field set to begin redevelopment until Jul 2022

LNG to be part of seasonal natural gas storage play in Europe: Snam CEO

Lausanne, Switzerland — LNG supplies to Europe can increasingly be diverted into storage in the summer, giving storage operators the ability to then release the gas in the higher-demand winter months, the head of Italian TSO Snam said Wednesday.

Not registered?

Receive daily email alerts, subscriber notes & personalize your experience.

Register Now

Speaking at FT Commodities Global Summit in Lausanne, Switzerland, Snam CEO Marco Alvera said LNG would become "hugely seasonal" and that Italy in particular could take advantage of these market dynamics.

LNG, he said, is likely to play a key role in gas supply into Europe but "will need to be tied into storage."

"Europe has a huge opportunity in storage," Alvera, who is also a director on the board of S&P Global, said.



"LNG is going to become hugely seasonal," he said, adding that the majority of LNG demand is in the northern hemisphere.

"You will have very distressed LNG available in the summer and people will capture that if they have storage," Alvera said.

Alvera said Italy in particular could play an important role in importing LNG for seasonal storage.

"Italy is in a unique position for gas storage reserves and ability to export gas," he said.

"It can really be the hub where people import LNG in the summer and export it out to the rest of Europe in the winter."

Italy has a current gas storage capacity of some 16.5 Bcm, second only to Germany in terms of size within the EU.


ITALIAN TENDER


Italy is already moving toward a joint LNG import and storage strategy.

OLT Offshore, the operator of the Toscana LNG import facility, awarded 16 unloading slots earlier this month as part of a bundled storage and regasification capacity procedure for the 2017/2018 storage year.

OLT said it would allocate three LNG unloading slots in April, four in May, three in June, two in July, two in August and two in September.

The total LNG to be imported under the tender is equivalent to about 1.3 Bcm, which will be sent to the Stogit storage system.

As a result, Platts Analytics' Eclipse Energy expects LNG send-out in Italy to be up 10 million cu m/d year-on-year this summer.

Europe as a whole is expected to import more LNG in 2017 given a boost in global LNG production capacity and relatively low prices.

According to data released this week by LNG industry group GIIGNL, European net imports of LNG totaled 38.5 million mt last year, up just 2.4% year on year.

It represented 15% of the global import total of 264 million mt, which was up 7.5% year on year.

Of that, the majority -- 160 million mt, or 61% -- was bought by countries in northeast Asia (Japan, South Korea, China and Taiwan).


INTERCONNECTIVITY


Alvera also said Europe's gas market was becoming increasingly interconnected -- a goal of the EU Energy Union -- which would improve the efficiency of the transmission system.

"We need to interconnect France and Spain, reverse flow out of Italy, [provide] additional storage and LNG and you've achieved the Energy Union," he said.

Properly connecting Turkey to the European gas system would result in "the world's largest interconnected market," he said.

The drive to create interconnections and create harmonization would ultimately bring gas prices down to the benefit of consumers.

But, he said, the greater efficiencies of the Energy Union would "take some trading margins out of the system."

--Robert Perkins, robert.perkins@spglobal.com
--Stuart Elliott, stuart.elliott@spglobal.com
--Edited by James Leech, james.leech@spglobal.com