Italy’s government is planning to reduce the spread between the country’s PSV gas hub and the Dutch TTF, through the ‘Corridor of liquidity’ plan presented to the Italian parliament as part of the new National Energy Strategy (SEN) by Carlo Calenda, the minister for economic development, last week. At the same time, a new FRSU – intended to increase the country’s supply security – may also play a role in making the Italian hub more liquid.
The Italian government wants to put in place a regulated player that buys long-term transport capacity through the entire Swiss route, which brings gas to Italy from the liquid hubs in northwest Europe – mainly the Dutch TTF. This capacity will then be resold in bundled packages covering the entire route through daily auctions. The mechanism aims to get rid of the fixed transport costs still persisting on the Swiss route
According to figures provided by the Italian government, the spread between the PSV and the TTF has been decreasing during the past few years but has now stabilised around €2/MWh ($2.2/MWh), or 10%. According to Calenda, the spread is the result of about €1.3/MWh of fixed logistics costs and approximately €0.5/MWh of variable logistics costs.
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