Italian midstream sector prepares to embrace change at Pipeline & Gas Expo 2024

Navigating a complex energy landscape, Italy needs infrastructure solutions for both its present and future. Pipeline & Gas Expo, taking place 29th–31st May at Piacenza Expo in Italy, will provide an unmissable forum for the midstream sector to discuss upgrading natural gas infrastructure, while exploring opportunities in hydrogen and biomethane integration, future-proofing businesses for the energy transition.

The Italian midstream oil and gas sector is undergoing a transformative shift, presenting a unique landscape of opportunities for suppliers involved in constructing and maintaining fuel processing, storage, and distribution infrastructure. While Italy still relies heavily on fossil fuels, a strong push towards renewable energy and diversification is creating a dynamic mix of immediate and long-term demands. This presents exciting prospects for both domestic and international players at the upcoming Pipeline & Gas Expo in Piacenza, Italy, 29th–31st May 2024.

“Italy stands at a pivotal moment in its energy infrastructure evolution,” says Fabio Potestà, director of Mediapoint & Exhibitions, the organiser of Pipeline & Gas Expo. “While we need to meet current natural gas demands, we must also strategically adapt our infrastructure to accommodate the rise of alternatives such as hydrogen and biomethane. Pipeline & Gas Expo provides a crucial platform for industry leaders to discuss these challenges, seize opportunities, and collaborate to build a sustainable energy future.”

Italy’s continuing dependence on oil and gas
In 2022, over 80% of Italy’s energy supply still stemmed from fossil fuels, largely due to the nuclear phase-out post-Chernobyl and the comparatively slow adoption of renewables compared to the EU average. This dependence is projected to continue, with Italy likely to be one of the most fossil-fuel-reliant EU countries for electricity by 2030.

Environmental concerns are not absent, however. Italy’s Nationally Determined Contribution (NDC) under the Paris Agreement targets a 55% reduction in greenhouse gas emissions from 1990 levels by 2030, aligning with the EU’s ambition of net-zero by 2050.

Recognising the need for cleaner fossil fuels, Italy has shifted significantly towards natural gas, especially after high-efficiency gas plants gained inclusion in the European green taxonomy. The country’s natural gas consumption has steadily risen over the last decade, constituting 50% of the energy mix in 2022.

Favourable geographic location for gas imports
Natural gas necessitates extensive midstream infrastructure for its transportation from production fields or import terminals to distribution networks, power plants, and industrial consumers. With its Mediterranean location and numerous ports, Italy is well-positioned to not only receive and process gas for its own needs but also to distribute it to other European countries.

This advantage played a crucial role in fulfilling the REPowerEU plan, as Italy successfully reduced reliance on Russian gas from 41% in 2021 to just 3% by the end of 2022. This swift transition was achieved through diversifying pipeline imports from Algeria, Libya, and Azerbaijan, as well as by significantly increasing liquefied natural gas (LNG) imports by 47% in the same period, primarily from Qatar and the USA.

To handle this influx, Italy has secured new floating storage and regasification units (FSRUs), including the Golar Tundra (operational since July 2023) and BW Singapore (anticipated to be online in Q2 2024, regulatory and gas-grid connection permitting).

The impact of oil and gas on Italian industry
Italy’s strategic location on the Mediterranean and its well-developed midstream infrastructure have also bolstered its downstream sector, fostering a thriving petrochemical industry. At the same time, easy access to oil and gas has supported Italy to become Europe’s second-largest manufacturing hub after Germany. Many Italian plants, including those producing plastics, synthetic rubber, pharmaceuticals, and steel, rely on oil and gas as a raw material or fuel, which has further encouraged the development of Italy’s already extensive pipeline network.

Embracing the energy transition with hydrogen and biogas
While Italy is committed to reducing its reliance on fossil fuels, this presents an opportunity for evolution, not decline, for the midstream sector. The National Recovery and Resilience Plan (NRRP) prioritises alternatives such as hydrogen and biomethane, which rely on similar infrastructure. Additionally, future carbon capture projects will also require facilities for gas storage, processing, and transport.

The NRRP specifically earmarks €160 million to enhance knowledge of hydrogen technology across production, storage, and distribution, and €450 million to expand the domestic hydrogen market through the establishment of a large-scale production facility. On the biomethane front, the plan allocates an impressive €1.92 billion to develop this renewable gas, derived from crops, agricultural waste, or food waste.

Emilia-Romagna, the region hosting Pipeline & Gas Expo, already stands out as a leader in biogas innovation and is the second-largest biogas producer in Italy. Here the regional economy revolves largely around agriculture, livestock, and food processing – sectors which generate substantial waste suitable for conversion into biomethane.

Pipeline & Gas Expo: Where industry leaders meet
As Italy navigates the crossroads of its energy landscape, the upcoming Pipeline & Gas Expo in Piacenza facilitates industry leaders to capitalise on the current demand for natural gas infrastructure, while preparing to support hydrogen, biogas, and carbon capture needs in the future. Including more than 150 exhibitors, a packed conference programme, and unparalleled networking opportunities, the event will serve as a catalyst for collaboration, ensuring the longevity and growth of the Italian midstream sector.

Visit pipeline-gasexpo.it to find out more or register for your free visitor’s pass.

www.pipeline-gasexpo.com

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