Italy's energy regulator and the antitrust watchdog late Thursday said
they have started a fact-finding investigation into the country's
natural gas storage to determine if there are obstacles to new
capacity.
In a joint statement, the two watchdogs said the probe is
necessary because new capacity added so far isn't sufficient to
guarantee security of Italy's energy system or give the flexibility to
boost competition.
The investigation will also look at what alternatives exist to storing gas and the industry's access to new companies.
The energy regulator said so far new capacity has added 1
billion cubic meters of gas for a total 13.9 billion cubic meters,
which it calls insufficient.
It added first estimates for this winter indicate the
presence of some "serious criticality" in relation to the possible lack
of adequate gas supplies in the event of adverse climate conditions.
More than 60% of Italy's power is generated from gas-fired plants. The country has no nuclear power and limited use of coal.
The watchdog said that Eni SpA -owned Stogit SpA holds the
vast majority of the country's storage capacity. Eni is Italy's biggest
gas company by volume.
No deadline was given for when the investigation would end.
Italy has began using its gas reserves as imports are
insufficient to meet demand, said Enel SpA's Chief Executive
Fulvio Conti in an interview state television RAI SpA will broadcast
later Friday. He added this shouldn't cause alarm.
Enel, the country's former power monopoly, and energy
company Edison SpA have said they plan to expand in the
profitable gas storage sector.