Natural gas remains one of the foundations of Italy’s energy system. It is used in household heating, industry, and electricity generation, and it accounted for about 38% of total energy supply in 2024. Italy produces only a small share of the gas it consumes, so the sector depends on pipelines, liquefied natural gas terminals, underground storage, and a national transmission network.
That dependence became a major strategic issue after Russia’s invasion of Ukraine. Italy had previously received a large share of its gas through the northern route at Tarvisio. The government and energy companies then accelerated purchases from Algeria and Azerbaijan, increased LNG imports, and strengthened plans to move more gas from southern Italy toward northern demand centres.
In 2024, Italian gas consumption was about 61.8 billion cubic metres, while domestic production was just under 2.6 billion cubic metres. Approximately 95% of available gas therefore came from abroad. What changed was the structure of that dependence: Italy became less exposed to one supplier and more reliant on a portfolio of Mediterranean pipelines and global LNG cargoes.
Algeria and Azerbaijan Strengthened the Southern Routes
Italy has access to several pipeline systems with different supply origins. The TransMed system carries Algerian gas through Tunisia and enters Sicily at Mazara del Vallo. GreenStream connects Libya with Gela. The Trans Adriatic Pipeline reaches Puglia at Melendugno and brings gas from Azerbaijan through the Southern Gas Corridor. Northern entry points connect Italy with wider European networks.
Algeria remained Italy’s largest supplier in 2024, delivering about 23.3 billion cubic metres. Its importance increased sharply as Italy reduced Russian purchases, although Algerian volumes fell from the previous year. Libyan imports also declined to around 1.4 billion cubic metres. Diversification reduces exposure to one country, but individual routes still face production, political, and operating risks.
Azerbaijani gas has become a stable part of the mix since the Trans Adriatic Pipeline began commercial operations in late 2020. TAP has an operating capacity of about 10 billion cubic metres per year and can be expanded with additional compressor stations. By September 2025, more than 41 billion cubic metres had been delivered through TAP to Italy.
These southern routes also support Italy’s ambition to become a gas gateway for central and northern Europe. However, that role depends on enough south-to-north transport capacity because more gas now enters through Sicily, Puglia, Tuscany, Veneto, and Ravenna.
LNG Has Become a Permanent Part of Italian Gas Security
Liquefied natural gas moved from a supporting role to a central position in Italy’s supply strategy. LNG can arrive from several exporting countries, giving buyers more flexibility than a pipeline tied to one production area. In 2024, Italy imported about 14.7 billion cubic metres of LNG. Qatar, Algeria, and the United States supplied approximately 95% of these volumes.
Italy already had terminals at Panigaglia, offshore Tuscany, and offshore Veneto. The energy crisis led to the rapid addition of floating storage and regasification units at Piombino and Ravenna. Piombino entered service in 2023 with capacity of about 5 billion cubic metres per year. Ravenna started operations in May 2025 and added another 5 billion cubic metres.
With Ravenna operating, Italy’s total regasification capacity rose to roughly 28 billion cubic metres per year, equal to more than 40% of recent annual demand. Actual LNG imports remain dependent on prices, terminal bookings, shipping conditions, and competition from other buyers.
The change was clear in 2025. Snam reported that LNG represented more than 30% of Italian gas supply, while pipelines still provided the largest share. LNG gives the system more choice when flows from a particular route weaken, but it also connects Italy more directly to global price competition.
Storage and the Grid Turn Imports into Reliable Supply
Italy’s gas system relies on extensive infrastructure that balances supply across seasons and regions. Snam operates the main transmission network, connecting pipelines, LNG terminals, storage sites, power stations, distribution systems, and industrial users.
Underground storage is especially important because demand rises during cold periods. Suppliers inject gas during lower-demand months and withdraw it during winter. Strategic reserves provide additional protection against supply interruptions.
The network must now adjust to a reversal in supply direction. Historically, large volumes entered from the north. More gas now arrives through southern and coastal terminals. Snam’s Adriatic Line is intended to increase transport capacity from the south toward northern Italy and possible export points.
Cross-border exports remain smaller than domestic consumption, but they are becoming more relevant. Snam reported that exports rose from around 0.6 billion cubic metres in 2024 to 2.1 billion cubic metres in 2025. Its longer-term strategy expects export flows to grow as southern supply routes and LNG capacity are linked more effectively to European markets.
Domestic Production Cannot Replace Imports
Italy has produced natural gas from fields in the Adriatic Sea and several onshore areas, but output has declined over the long term. Domestic production was below 2.6 billion cubic metres in 2024 and covered only a small fraction of demand.
Increasing production from existing concessions can improve security at the margin, but the scale of remaining output means it cannot replace the international supply system. Even a strong percentage increase would leave Italy heavily dependent on imported gas.
The more important domestic development may be biomethane. Italy’s agricultural and waste-management sectors can support renewable gas production, and biomethane can be injected into parts of the existing network. Volumes remain much smaller than fossil gas imports, but biomethane could help preserve useful infrastructure while lowering emissions.
Hydrogen and carbon capture are also included in long-term planning. Some pipelines and storage assets may eventually support low-carbon gases or carbon dioxide transport. These plans matter for the future value of the network, although natural gas remains the main fuel moving through it today.
Italy Must Balance Security with Falling Long-Term Demand
Italian gas demand fell sharply in 2022 and 2023 because of high prices, mild weather, efficiency measures, lower industrial use, and changes in electricity generation. Consumption stabilised in 2024 and rose to around 63.4 billion cubic metres in 2025, with gas-fired power generation driving much of the increase.
This recovery does not necessarily signal long-term growth. Renewable electricity, building renovation, heat pumps, industrial efficiency, and European climate policy are expected to reduce fossil gas demand over time. Italy is therefore expanding supply security for a fuel whose role is likely to become smaller.
In the near term, natural gas will remain essential for heating, industry, and flexible electricity generation. Italy’s position is stronger than it was at the start of the European energy crisis because its supply routes are more diverse and LNG capacity is much larger. Over time, the value of this system will depend on whether pipelines, storage, and terminals can serve both lower fossil gas demand and a growing market for biomethane, hydrogen, and other lower-carbon gases.
