Eni pledges more gas for Europe to help cut reliance on Russia - REUTERS

March 18, 2022, 7:32 PM GMT+2

Stephen Jewkes

• Extra gas could come from Algeria, Egypt and beyond
• Eni steps up targets on path to carbon neutrality
• Returns raised but still disappoint, says broker

MILAN, March 18 (Reuters) - Italian energy group Eni said on Friday it could provide extra gas to Europe to help reduce reliance on Russian supplies after Moscow's invasion of Ukraine.

Eni made the pledge as it set out its strategy to 2025, promising investors better returns and vowing to pick up the pace on its climate ambition to be carbon neutral by 2050.

"We are leveraging our global upstream business and partnerships with producing countries to find alternative supply opportunities for Europe," Chief Executive Claudio Descalzi told a conference call.

The European Union, which relies on Russia for 40% of its gas and 27% of its oil, has proposed plans to replace nearly two-thirds of Russian gas imports this year and aims to phase out dependence on all Russian fossil fuels by 2027.

The US should link eastern Mediterranean gas to Europe to subvert Russia - THE HILL

MARCH/15/22 12:00 PM EDT

Nicholas Saidel, Godfrey Garner 

The Biden administration should pause its hyper-focus on renewable energy and support efforts to prevent Russian energy blackmail against our European allies. The European Union (EU) has declared it will cut reliance on Russian gas by two-thirds. If the U.S. is serious about energy security in Europe, it must help ensure that eastern Mediterranean natural gas makes it to Europe’s shores.

In late January, President Biden took the opposite route, surprising Greece, Israel and Cyprus — the regional entities in the U.S.-sponsored “3+1” cooperation framework — by withdrawing support for the EastMed Pipeline, an unfunded, multibillion-dollar concept conceived in 2016 that would have brought eastern Mediterranean gas to Europe via an underground pipeline. Biden cited climate change and economic viability concerns, both arguably reasonable positions at the time. However, considering Russia’s war in Ukraine and its downstream effects, Biden must show flexibility and adapt his natural gas policy.

Gas from the eastern Mediterranean could diversify Europe’s energy portfolio. Israel alone has approximately 2.2 trillion cubic meters of gas awaiting discovery. While it wouldn’t satisfy all of Europe’s needs, it would help to offset Russian gas imports. NATO countries such as Germany, Italy and Turkey could benefit from new suppliers, especially since German Chancellor Olaf Scholz has halted the Nord Stream 2 pipeline project that would have increased the country’s reliance on Russian gas. Like Germany, Italy is seeking alternative sources.