Libyan gas exports from Greenstream pipeline set to flood Europe

The restart of the Greenstream pipeline to Italy will flood an already oversupplied European gas market. Gas prices look set to drop

The restart of Libyan gas exports to Italy could trigger a slump in European prices, with the continent’s storage levels already high and an unseasonably warm start to winter. Other suppliers, such as Russia, Norway and Qatar, may be forced to consider lowering or diverting volumes. Pipeline inspections are under way on the Libya-Sicily Greenstream link, with export volumes to be decided in late November to mid-December. The subsea pipeline was flowing 26 million cubic metres a day (cm/d) of gas to Italy before it was shut down in February at the outset of the Libyan civil war. Initial tests will send around 3 million cm/d to Italy, said operator Eni. Greenstream, with an export capacity of