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About Commodity Insights
07 Oct 2022 | 09:01 UTC
Highlights
Daily timing, temperature controls
Russian gas supply down 40%
September gas demand down 24%
Italy has trimmed 15 days from its Winter 2022/23 domestic heating season as part of a drive to save 3.6 billion cubic meters of natural gas under the terms of a decree signed by the Ecological Transition Ministry Oct. 6.
The decree removes eight days from the start and seven days from the end of the season.
It also requires an overall one degree C reduction in maximum temperature settings and a daily reduction in heating time of one hour, with exceptions made for extreme weather conditions, the Ministry said.
Much of Italy's domestic heating is governed by condominium laws, which are adapted by region.
Italian domestic gas demand reached 5.7 TWh in the peak winter month of January 2022, compared to 912 GWh in the peak summer month of July.
Under this winter's regime, the colder northern Zone E is permitted 13 hours of daily heating from Oct. 22, 2022 through Apr. 7 2023 whereas the warmest southerly Zone A is permitted five hours of daily heating from Dec. 8, 2022 through Mar. 7 2023.
The maximum heating temperature has been set at 18 degrees C.
Italian gas for November delivery was assessed by Platts, part of S&P Global Commodity Insights, at Eur159.70/MWh Oct. 6, down Eur3.63/MWh on the day.
Italy announced Sept. 6 a gas containment plan that aims to save between 3.6 Bcm and 8.2 Bcm in Winter 2022/23 depending on the level of alert.
For the year to August, Russian gas supply volume was down 40% year on year to 11.7 Bcm, according to Ministry data, even as overall import volume rose 4% year on year to 50.2 Bcm.
September data from grid operator Snam showed a 24% decline in gas demand to 3.5 Bcm. Industrial demand was down 30% to 834 million cubic meters, domestic demand down 10% to 1.0 Bcm and gas-to-power demand down 27% year on year to 1.7 Bcm.