Eni CEO Questions EU Russian Gas Ban as Supply Tightens

Eni’s CEO is urging the EU to reconsider its Russian LNG ban, warning the bloc may struggle to replace roughly 20 bcm of supply. Ongoing Hormuz disruptions are tightening global gas markets and complicating Europe’s storage outlook.

(Reuters) - The European Union should reconsider its plans to progressively ban imports of Russian gas from the start of next year, the head of Italian energy group Eni says. 

 

Russia faces a European ban on imports of Russian liquefied natural gas on short-term contracts from April 25 and on long-term contracts from January 1, 2027.

However, Eni CEO Claudio Descalzi was quoted by Italian news agencies as saying it was unclear how the bloc could replace 20 Bcm of Russian LNG from Russia.

The Iran war had disrupted energy shipments in what he called "the most important event of the last 40 years" to affect energy supplies. He made the comments at an event organised by Italy's co-ruling League party on Sunday.

The U.S.-Israeli war against Iran has shut the Strait of Hormuz - a waterway that normally carries about a fifth of global LNG supplies - to most ships, resulting in a tighter supply outlook and higher gas prices.

Last week, the European Network of Transmission System Operators for Gas (Entsog) issued a warning about gas storage levels, saying the conflict in the Middle East is restricting Europe's ability to refill storages, which at the beginning of this month were at their lowest level since 2022.