Europe needs a long-term energy plan, says Descalzi, CEO of Eni, Energy News, ET EnergyWorld

MILAN: Soaring gas prices as winter approaches are proof that the European Union needs to draw up a long-term energy security plan, the head of Italian company Eni told La Repubblica newspaper.

Claudio Descalzi noted that the EU imports almost all the natural gas and most of the oil it needs, which makes it structurally dependent on foreign supplies.

“Europe needs to have what it does not have today, a structured, long-term energy security plan,” Descalzi said in an interview published on Saturday.

“I don’t think there will be any problems with the gas supply, but it will cost more,” he said of this winter.

Eni has strategic long-term gas supply contracts with a number of gas-producing countries, including Russia.

European households face much higher energy bills due to soaring wholesale electricity and gas prices, and consumer groups have warned that the most vulnerable could experience fuel poverty.

Spain urged the European Commission to develop guidance to help member states respond coherently to electricity price spikes without testing the bloc’s rules.

Italian Prime Minister Mario Draghi also said this week that Europe must act to diversify its energy supplies and strengthen the bargaining power of buyer countries to help curb rising electricity and gas prices.