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Snam reduces gas injection into network

Oil&Gas Materials 31 July 2020 10:47
Snam reduces gas injection into network

BAKU, Azerbaijan, July 31

By Leman Zeynalova – Trend:

The volumes of gas injected into the network by Italian Snam company in the first half of 2020 totalled 35.71 billion cubic metres, down by 4.11 billion cubic metres, or 10.3 percent, compared with the corresponding figure for the first half of 2019 (39.82 billion cubic metres), Trend reports citing Snam.

Essentially it is a result of the significant drop in demand for natural gas in Italy (36.06 billion cubic metres; -4.38 billion cubic metres; -10.8 percent) recorded in all consumption sectors.

In particular, the contraction in gas demand is attributable: (i) to the lesser consumption in the thermoelectric sector (-1.66 billion cubic metres; -12.9 percent), recorded almost entirely in March-June as a result of the reduction in demand for electricity caused by lockdown measures to contain the COVID-19, as well as the increase in production from hydroelectric and photovoltaic plants, partly offset by a substantial drop in electricity import flows; (ii) to the lesser consumption in the residential and tertiary sector (-1.55 billion cubic metres; -8.9 percent) compared with milder temperatures in the first half of 2019.

The reduction in demand for natural gas was also affected by lesser consumption in the industrial sector (-1.03 billion cubic metres; -11.4 percent), affected by a 20 percent reduction in the industrial production index in the first five months of 2020, intensified by the closure of various production activities following the lockdown (March-April) and then by the slow recovery of industrial production (May-June).

Adjusted for the weather effect, gas demand was estimated at 36.39 billion cubic metres, down by 3.32 billion cubic metres (8.4 percent) compared with the first half of 2019 (39.71 billion cubic metres), also following the greater use of energy efficiency enhancing measures by the residential and tertiary sector

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Follow the author on Twitter: @Lyaman_Zeyn

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