Consumption was equal to 63 billion cubic metres (bcm), down 8.4% from 2022 when fuel demand in the country had already reported an annual decline, the GME said.

The fall in 2023 consumption is the result of a 16% yearly drop in gas-fired power generation along with a 7.4% decline in gas consumed by businesses and households and a 4% decrease in fuel for the industrial sector.

Gas imports to Italy dropped by nearly 12% to 60.6 bcm, their lowest since 2015, with liquefied natural gas (LNG) playing a growing role in the country as it moves to gradually replace Russian gas that used to come via pipeline.

Fuel coming from Russia via pipeline accounted for 4% of total imports last year with gas from Algeria slightly down compared with 2022 but still representing the biggest single source of import for Italy.

(Reporting by Francesca Landini; editing by Christina Fincher)