Italy imported the largest volumes of liquefied natural gas among European countries in July, with government incentives encouraging traders to continue making purchases despite high prices, Bloomberg reported Friday.
This is the first time Italy has emerged as the top LNG purchaser among European nations in any July month, the report said, citing ship-tracking data going back to 2017. The country's gas storage reserves are at 75% of capacity at the moment, the highest level among its peers.
The Middle East conflict and the resulting supply disruption has almost doubled European gas prices this year, limiting LNG purchases despite the pressure to replenish inventories ahead of winter. Italy's decision to buy expensive gas could prove farsighted if tighter supply and high costs persist in winter.
Winter gas contracts are trading below summer prices, discouraging stockpiling but Goldman Sachs has warned tight supplies could push prices to as high as 100 euros per megawatt-hour in December, about 75% above present levels, the report added.
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