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.
The 3 countries are agreed to expand scope of free trade deals by 2017, says Turkish economy minister
Under current conditions, the IEA expects global output to exceed demand until the second half of 2017, Fatih Birol told journalists on the sidelines of an energy conference in Singapore.
The decision comes as the steel arm of the sprawling $100 billion conglomerate struggles to offload its loss-making British assets while its carmaking business continues to be plagued by weak sales.
Water quality and shortages also remain threat to health of many with onset of diseases
Bank expects ‘solid rise in energy prices, led by oil' next year
Bank of Uganda Governor Emmanuel Tumusiime-Mutebile said in a statement the bank would remain open, continue to operate normally and that the central bank would protect deposits.
Four presidents meet, but hopes of diplomatic breakthrough for cease-fire in eastern Ukraine remain low
Having taken years to negotiate, some producers voiced impatience for the deal to now be finally sealed; others simply fail to see why anyone would reject it.
"The value of this project will be $10 billion with a final production level of 600,000 barrels of oil per day," he said in Tehran.
Bangladesh has been one of the worst victims of global warming, with thousands of people being killed by cyclones in recent years that have become more frequent and deadlier.
Exporting Israeli gas via Turkey to Europe is viable option, says Israeli Energy Minister
French energy group EDF views Turkey as 'growth country' with more room for nuclear, renewable and hydro projects, VP says
"If OPEC sticks to its new target, the market's rebalancing could come faster," it said.
Further warrants issued against police suspected of using ByLock messaging service
A stock index of firms compliant with the principles of Islamic Sharia law, in cooperation with Bosna Bank International was launched today
Azerbaijani President Ilham Aliyev says bilateral energy projects with Turkey play key role for energy security in region