#oilwire – Italy is looking to shed its status as one of Europe’s most expensive gas markets, but the way it plans to do so has riled traders.
Lawmakers are aiming to turn a proposed national energy strategy that would overhaul the country’s gas sector into law by the end of the month. The plan, put forth by Economic Development Minister Carlo Calenda would see the nation buy pipeline capacity in neighboring Switzerland, and could cut gas prices by 5%.
In most cases, tweaks to a country’s internal energy market don’t get much attention. Yet Calenda’s proposal to use the Swiss capacity to try to boost liquidity and lower prices in Italy has led to a backlash from a lobby group that represents most of Europe’s major energy companies and trading houses. Italy’s intervention would have repercussions far beyond its borders.