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Europe can easily change gas coming via Ukraine with LNG, Snam CEO says

When a transit deal expires at completion of the year, Europe can quickly replace Russian gas flowing through Ukraine with melted natural gas (LNG), the CEO of Europe's greatest gas grid operator Snam said on Thursday.

Russia shipped about 15 billion cubic metres (bcm) of gas via Ukraine in 2023 - just about 8% of peak Russian gas flows to Europe through various routes in 2018-2019 - providing primarily Hungary, Slovakia and Austria.

Ukraine has refused to renew the transit deal with Russia due to the continuous military invasion. With the deal coming to an end this year, some concerns have arisen over energy security risks for these nations.

Europe has plenty of LNG centers to offset this 15 bcm of Russian gas, Snam's Stefano Venier said, speaking at a. post-result teleconference.

Venier described an LNG terminal just recently included Greece. and a floating terminal due to start operations in Italy at the. beginning of next year. The group has also completed works to. increase its gas export capacity towards Austria to 9 bcm from a. previous 6 bcm.

Snam on Thursday reported a 12% rise in nine-month core. revenues to 2.09 billion euros.

Consulting with Reuters after the results, Snam's Chief. Financial Officer Luca Passa confirmed the group remained in. settlements with Eni over the energy group's carbon capture and. storage (CCS) department.

We are doing due diligence on the brand-new Eni CCS system spinoff. to end up being a partner and eventually round up our stake ... this. would allow us to diversify our presence in this location of. organization, Passa said.

Snam has actually completed the financing for this year and might begin. to do pre-funding activities for 2025 with future relocations. depending on the response of the monetary markets to the U.S. elections, Passa said.

(source: Reuters)