Reuters: Russian gas discounts undermine Italy's quest for new routes
As Europe looks to wriggle free of Russia's energy grip, state-backed exporter Gazprom is working to convince Italy to stay the course with offers of cheap gas, potentially locking out rival supply from North Africa, the Caspian Sea and shipped LNG.
The race to ring-fence European gas markets from rising competition has led Gazprom to drop its dogged defence of oil-linked gas deals and prompted a spree of price cuts, the latest of which went to Italy's Eni.
"Gazprom, dead set on getting its South Stream gas pipeline project (to Europe) off the ground, will do everything it can to get other, alternative-source projects shelved," one of Italy's top oil and gas officials, who requested anonymity, said.
"Arbitration is under way with a series of clients on long-term gas contracts to make Russian gas even more attractive," he said.