Those who did not watch the games of Italy national football team managed by Roberto Mancini ahead of UEFA Euro 2020 should be surprised at how much their style of play have changed in comparison with previous major tournaments. However, the Squadra Azzurra was not rebuilt overnight but was being transformed with improvements made over the last years. In this regard, there is a clear analogy with the country’s gas market.
The meticulous work of Mancini’s staff, which allowed the team to rise to the occasion throughout Euro 2020, resembles the launch of TAP pipeline. That route was being constructed for about four years but as soon as flows started in 2021, TAP deliveries to Italy have held above long-term booked capacity for most of the year.
In recent years, LNG has become another integral source of supply for Italian buyers. With the introduction of the auction system for state-regulated regas capacity at Italy’s terminals three years ago, the utilization rate of Panigaglia and FSRU Toscana has considerably improved. It has provided more flexibility to the local market, as is the case with the Italy squad that have mastered tactical diversity under Mancini. The Euro 2020 semi-final when his team successfully adapted to Spain’s tiki-taka is just one example of how flexible the Azzurri currently are.
This choice between different supply routes allows for another comparison. If the access to multiple sources of gas has resulted in PSV YA contract being at much lower premium over TTF, then Mancini’s willingness to call up as many players to the national team as possible has simplified the process of choosing the starting lineup, even when key players are not available. Italy did not face many problems when playing against Turkey and Switzerland as the coaching staff found a perfect replacement for Marco Veratti in Manuel Locatelli.
Mancini’s departure from the Catenaccio is one more thing that brings together football and gas market. Highly defensive structure of the national team has recently given way to attacking style based on ball possession and aggressive pressing. As for the energy complex, you can see that Passo Gries point is increasingly losing its position among other routes for gas supply to Italy, thus contributing to the creation of a new market landscape.
Nobody knows what Squadra Azzurra’s greatest feat with Mancini as head coach will be. Similarly, it is unknown at what level PSV curve will settle against other hubs in two or three years. But we can say that, against the backdrop of profound changes in football and gas market in Italy, both the Euro 2020 final and PSV YA contract’s premium of about €0.25/MWh to the TTF equivalent, which is for now the lowest spread between yearly products, are no longer the limits.
Send my good luck wishes to Italy as they battle vs. England for the UEFA European Championship tonight. Forza Azzurri.
Source: Yakov Grabar
See original post by Yakov at LinkedIn.
