Written by Alasdair Sandford
Italy declares a state of emergency for energy amid concern in Europe that winter gas supplies may be disrupted.
Gas and power prices across Europe soared on Tuesday following an explosion and fire at Austria’s main gas distribution point, that killed one person and injured more than 20.
The disaster at Baumgarten further threatened supplies already feeling the squeeze from the closure of a pipeline in the North Sea on Tuesday. The UK’s Forties Pipeline System (FPS) was shut down on Monday for emergency repairs, as bitterly cold weather swept the country.
Brent crude futures, the global benchmark for oil prices, rose above 65 dollars (55.4 euros) a barrel – their highest since mid-2015. There are fears that prices could remain high throughout the winter, if supply problems and low temperatures continue in Europe, increasing demand for heating fuel.
The Baumgarten site, near Austria’s border with Slovakia, is a major distribution point, taking gas from as far away as Russia and pumping it along several pipelines towards neighbours including Germany and Italy, and elsewhere in Europe.
Italy, the largest recipient of gas from the Austrian plant, declared a state of emergency for gas as its managers declared that it would take several days to restore output. A state of emergency gives Rome the right to invoke extraordinary measures, such as allowing coal and oil power plants to operate a full blast.
The country’s industry minister said it was faced with a “serious” energy supply problem, while some energy prices surged by almost 100 percent. However, Claudio Dascalzi – the CEO of Italy’s largest gas company Eni SpA – said there was “no alarm among operators” and the problem could be balanced out even if it lasted for a few weeks.
Italy’s gas transport group Snam was also optimistic of a return to normal soon. “Supplies could resume today if the first indications on the absence of damage to transport infrastructure are confirmed,” it said.
The Slovak pipeline operator, Eustream, said Slovaia’s main gas supply route to Austria was suspended after the fire.
For more read the full of article at The Euronews
