World Bulletin / News Desk
There will be no gas flows from Libya into Italy for a third straight day on Monday after clashes between local militias at the North African country's Mellitah complex, Italian gas transport group Snam said.
Mellitah, operated by Libya's National Oil Corporation and Italy's Eni, supplies Italy with gas through the Greenstream pipeline, which ends at the Sicilian port town of Gela and at full capacity pumps at least 8 billion cubic metres a year.
"We have not been getting any gas from Libya since Saturday afternoon and also for today the expectations are of zero gas flows," a Snam spokesman said.
The disruption at the Mellitah complex is the latest to hit the energy sector in Libya, where protests have shut down oil-export terminals in recent months, and comes after January's hostage-taking at an Algerian gas plant.
The daily expected supply through the Greenstream pipeline for Monday would have been around 17.2 million cubic metres, data from Snam showed.
Italy gets most of its gas from Algeria, Russia, and Libya - which provides between 10 and 15 percent - while some comes from Norway and the Netherlands.
Italy will compensate the Libyan gas stoppage by raising imports from the Russian and Dutch pipelines, analysts said.
The halt in Libyan supply coincided with large scale gas supply falls due to unexpected pipeline outages in the North Sea, which at one point on Monday propelled British spot gas prices to five-year highs.
Unlike Britain, where most of the gas sold is on the spot market, Italy gets most of its gas through long-term contracts linked to the oil price.
In the past, Italy has approached Russia for extra emergency supplies when needed.
Shares in Eni and Snam were down 0.9 percent at 0940 GMT, overperforming Italy's main FTSE MIB index, which fell 1.5 percent on the day on protractred Italian political uncertainty.
Traders said the Mellitah clashes had limited impact on the two stocks as the stoppage is not expected to last long. Libya's defence ministry has sent security personnel to the Mellitah facility and gas exports should resume 48 hours after the compound is secured.
"We do not see a systemic risk for Italy since gas supply is currently large and demand continues to be low as winter draws to a close," an Italian energy analyst said.
Eni and Snam did not have details on when gas flows into Italy would resume.
Italy saw its gas imports from Libya suspended for several months during the 2011 civil war that ultimately led to the fall of former leader Muammar Gaddafi.
If Russian oil giant Rosneft's request for $49 billion from the government is not met, Russia could face larger budgetary and revenue problems, say experts
China launched the first stage of an Asian development bank, in what is widely seen as a challenge to U.S.-backed international banks.
Aid agencies are tentatively also giving away cash and letting refugees decide for themselves what they need. The money is being wisely spent and rarely wasted
The research firm IHS estimated this week that ISIL militants were producing about $2 million worth of crude oil a day before recent U.S.-led air strikes.
The conflict between Turkish and Greek Cypriots on the island continues over the ownership of the hydrocarbon reserves in the exclusive economic zones off the shore of the island
Aeroplane maker company Boeing sells plane parts to Iran, as part of easing the sanctions and first step since 1979
OPEC's second-largest producer, Iran is normally among the first members of the oil producers' group to call for supply cuts to support prices.
The 21-member Asia-Pacific Economic Cooperation (APEC) bloc said they would advance structural reforms to unleash new sources of growth.
Ukraine needs to pay its previous debt to Russia by the end of the year and pay in advance for getting new volumes of natural gas
The loss of Khafji's 280,000 barrels per day of Arabian Heavy crude will be felt more in Kuwait, which has far less spare output than its neighbour
Under Lufthansa's proposals, pilots would still be able to retire early, but the age would gradually increase to 60 from 55.
Labor tension on the rise as high inflation reduces spending power.
Third quarter growth was lowest in more than five years, threatening annual target
De Margerie was killed when a business jet collided with a snow plough during takeoff at Moscow's Vnukovo International Airport overnight, the company and airport officials said.
Stabilised political and security situation, the launch of government initiatives toward fiscal consolidation and strong support from external donors are some of the reasons given for improved economic outlook.