According to OGJ (1/1/05) , Italy has proven Natural Gas reserves of 8.0 trillion cubic feet (Tcf), the fourth-largest in the EU. In 2004, Eurostat reported that Italy produced 440 billion cubic feet (Bcf) of natural gas, a decrease of 7 percent from 2003 and an 11 decline percent from 1985.

The country consumed 2.8 Tcf of natural gas in 2004, with consumption increasing at an average of 7.4 percent per year since 1985. An increase in the construction of combined-cycle, gas-fired turbines (CCGFT) has been the principle driving force behind the increase in natural gas consumption.

The maturation of Italy's natural gas fields and the rapid advance in domestic consumption have increased the country's reliance upon natural gas imports. According to Eurostat, Italy's natural gas imports supplied 84 poercent of the country's domestic consumption in 2004, versus 59 percent in 1985. The largest sources of these imports in 2004 were Algeria (38 percent), Russia (32 percent), and the Netherlands (14 percent).

Eni is the dominant actor in all aspects of the natural gas sector. The company controls almost all of Italy's natural gas production. An Eni subsidiary, Snam Rete Gas S.p.A. (Snam), owns and operates the domestic natural gas transportation system. Another Eni subsidiary, Stoccaggi Gas Italia S.p.A. (Stogit) manages most of the natural gas storage facilities in the country. Finally, Eni subsidiary Italgas controls one quarter of the retail gas distribution market.