Italy Can Cope Without Russian Gas, Explores alternatives-Draghi

ROME (Reuters) -Italy would be able to weather a complete breakdown in gas supplies from Russia in the short-term but that would make following winters more difficult, Prime Minister Mario Draghi said on Tuesday.

Even if Russia cut supplies next week, gas storage levels and alternative import flows would suffice to cover peak demand, especially with milder weather lowering demand, Draghi said in parliament.

“However in the absence of Russian supplies the situation for coming winters and even the more immediate future, risks being more complex,” the prime minister said.

Italy is working to increase supplies from other gas producing countries such as Algeria and Azerbaijan, as well as making greater use of liquefied natural gas terminals, he added.

The government is also ready, if necessary, to control gas supplies to industry and the power generation sector and use existing coal- and oil-fired power plants on a temporary basis.

Draghi’s comments come as sweeping Western sanctions slapped on Russia after it invaded Ukraine threaten to disrupt energy flows, raising the spectre of gas shortages, blackouts and price increases.

Italy, which uses gas for around 40% of its electricity generation, imports more than 90% of its gas. Last year 40% of imports came from Russia.

While energy supplies have so far largely avoided sanctions, there are concerns possible disruptions could push energy prices higher.

Draghi, who pledged additional support to families and businesses if needed, said there were no signs of gas flows from Russia being interrupted at the moment.

“However it is important to consider all possibilities given the risk of retaliation and a possible further tightening of sanctions,” he said.

Finding a wider range of energy supplies was something that needed to be done irrespective of what happened to Russian gas flows in the short term, Draghi said.

“We can’t be so dependent on the decisions of a single country… Our liberty is at stake, not just our prosperity.”

(Reporting by Crispian BalmerWriting by Keith Weir and Stephen Jewkes Editing by Agnieszka Flak)