Italy's Pro-Gest Suspends Paper Mill Production, Cites High Natural Gas Prices

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Researched by Industrial Info Resources (Sugar Land, Texas)--Italian tissue and packaging producer Pro-Gest has temporarily halted production at all six of its paper mills in Italy, due to high natural gas prices amid the Russia-Ukraine conflict, according to EUWID. Subscribers to Industrial Info's Global Market Intelligence (GMI) Pulp, Paper & Wood Plant Database can click here for a list of Pro-Gest plant profiles.

In 2021, Russia was the largest exporter of natural gas to the European Union (EU), supplying 40% of Europe's gas.

Fears that Russia could cut off Europe from its natural gas via an embargo on the Nord Stream 1 pipeline, in addition to Western and EU sanctions on Russia, have sent natural gas prices surging. The Dutch TTF futures contract--a European benchmark for the price of natural gas--reached $227.2 euro per-megawatt-hour on March 6, after trading at just $94.4 euro per-megawatt-hour on February 24.

However, Russia's state-owned Gazprom (Saint Petersburg) has not shut down the Nord Stream 1, and continues to send gas to Europe through Ukraine's network at normal levels. About one-third of Russia's supply to the EU flows via Ukraine, according to Bloomberg.

For a list of industrial plants impacted by the conflict click here.

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