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
LNG | Natural Gas

Italy's Eni sees Q2 gas volumes sink 22% as COVID hits demand

Coal | Electric Power | Renewables | LNG | Natural Gas | Coronavirus

Price transparency a key factor in expanding hydrogen trade flows in Asia

LNG | Natural Gas | NGL

Platts LNG Alert

Electric Power | Renewables | LNG | Infrastructure Utilities

Caribbean Energy Conference, 21st

Natural Gas | Oil

Rosneft's Q2 output, refining volumes down under severe pressure: CEO

Italy's Eni sees Q2 gas volumes sink 22% as COVID hits demand

Highlights

Sales in European markets see 35% volume decline

LNG resilient, buoyed by upstream supply

PSV-TTF premium narrows in Q2

Barcelona — Italy's largest gas group Eni reported July 30 a 22% decline in second quarter gas sales volumes to 13.9 billion cubic meters, with all operations affected by the coronavirus pandemic.

Not registered?

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

Register Now

Gas sales in Eni's non-domestic European markets tumbled 35% year on year due to reduced volumes in all territories where present, with the exception of the UK.

Lower gas nominations made by Botas in Turkey and portfolio rationalization initiatives in Germany weighed on the overall total, the company said.

Sales in international markets fell 57% year on year.

LNG sales showed some resilience with a 9% year on year volume decrease to 2 Bcm as Eni leveraged its own upstream production to soften the blow, it said.

Domestic Italian sales volumes declined just 6% as a 20% hike in exchange volume to 4.4 Bcm helped offset demand destruction, which included a 41% drop for Italian residential and a 45% drop in demand for power generation.

The company's power sales were 8.4 TWh in Q2 2020, down 9% year on year, also as a result of the economic slowdown.

For Q2, Eni reported average realized price at the Italian PSV gas hub of Eur75/1,000 cu m, down from Eur121/1,000 cu m in the first quarter and down 58% year on year, while the average price of gas sold by Eni at the TTF gas hub in the Netherlands was Eur57/1000 cu m in Q2, down from Eur102/1,000 cu m in Q1 and a drop of 58% year on year.

The spread between the two narrowed from an average of Eur41/1,000 cu m in Q2 2019 to Eur18/1,000 cu m in Q2 2020.

For the full year 2020 Eni has forecast a Eur20/1,000 cu m premium for the PSV over the TTF, down from a spread of Eur29/1,000 cu m in 2019.

The forecast is for an average realized price of Eur127/1,000 cu m at the PSV, meaning Eur107/1,000 cu m at the TTF.

In the company's upstream unit, natural gas production amounted to 4.7 Bcf/d in the period, down 11% year on year due to lower production in force majeure-hit Libya and the impact of lower natural gas demand in Egypt, among others, while production increased in Nigeria and Kazakhstan.

ENI: GAS SALES BY MARKET (Bcm)

Q2 20
Q2 19
% change
Italy
9.13
9.69
-6
Of which:
Wholesalers
1.47
1.93
-24
Exchange
4.36
3.63
20
Industry
1.04
1.30
-20
Mid-size
0.1
0.14
-29
Power generation
0.36
0.65
-45
Residential
0.36
0.61
-41
Internal
1.44
1.43
1
Rest of Europe
3.87
5.97
-35
Importers to Italy
0.98
1.10
-11
Iberia
0.75
1.00
-25
Germany, Austria
0.04
0.39
-90
Benelux
0.62
0.88
-30
UK
0.43
0.41
5
Turkey
0.26
1.27
-80
France
0.7
0.84
-17
Other
0.09
0.08
13
Rest of World
0.92
2.14
-57
Worldwide sales
13.92
17.80
-22
Of which LNG sales
2
2.20
-9
Source: Eni