On March 4, Michele Vitiello, the Secretary General of the Italian Committee of the World Energy Council (WEC Italy), spoke with Report about the expected timeline for completing SOCAR’s acquisition of Italiana Petroli, the potential effects of Azerbaijani investment on Italy’s refining sector, the implications for the country’s retail fuel market, and the role of Azerbaijani gas in ensuring Italy’s energy security.

Vitiello stated that the European Commission’s approval of SOCAR’s purchase of a 99.82% stake in Italiana Petroli marks a decisive milestone in the process. According to him, once a transaction successfully passes European competition review, the path toward finalizing the deal becomes largely defined, and the anticipated timeline — by the end of the first quarter of 2026 — appears realistic. He emphasized that several technical and procedural steps still remain, including matters related to national authorizations and aspects of governance and industrial integration. However, he noted that there are currently no indications of political or regulatory obstacles that could delay the process. While acknowledging the complexity typical of large-scale transactions, Vitiello stressed that completing the agreement within the expected timeframe remains a reasonable objective.

Addressing expectations regarding Azerbaijani investment, Vitiello explained that the deal’s estimated value of €2.5–3 billion highlights the strategic significance of the asset. He emphasized that the broader importance of the transaction lies not only in its financial scale but also in the investor’s capacity to implement a long-term industrial strategy. If SOCAR’s involvement leads to modernization of refining facilities, improvements in operational efficiency, and stronger logistics and storage infrastructure, the project could contribute to revitalizing Italy’s downstream sector. He noted that Europe’s refining industry is currently facing a challenging environment marked by narrowing profit margins and increasingly strict environmental standards. In such conditions, the availability of capital and a stable industrial vision could help facilities become more competitive, environmentally sustainable, and better integrated within European energy value chains. Vitiello added that if the project is supported by a coherent strategy aligned with the Italian market and developed in dialogue with local communities and environmental considerations, it could serve as a catalyst for renewal in the sector.

Speaking about the potential impact on Italy’s fuel retail market, Vitiello highlighted that Italiana Petroli’s network of more than 4,500 service stations represents one of the company’s key strengths and a major asset for the country. He emphasized that the arrival of a vertically integrated energy company such as SOCAR could enhance efficiency throughout the supply chain, from procurement to distribution, creating economies of scale and improving logistical coordination. At the same time, he noted that fuel prices at the pump largely depend on international quotations for refined products as well as taxation levels, which are relatively high in Italy compared with many other countries. Therefore, he stated that a change in ownership alone is unlikely to produce structural changes in prices. Instead, the more significant effects may appear in service quality and innovation. Investments in network modernization, digitalization, expanded services, and the integration of multi-energy solutions — including infrastructure for alternative fuels and electric mobility — could strengthen competition through improvements in innovation and customer services.

Vitiello also commented on the expansion of the Trans Adriatic Pipeline (TAP), which since January 2026 has offered market participants access to an additional 1.2 billion cubic meters of annual transportation capacity. He explained that the pace at which this capacity will be utilized depends largely on market conditions, including domestic demand levels, gas storage volumes, LNG availability, and price differences between supply sources. He pointed out that Italy’s gas consumption has declined somewhat compared with pre-crisis levels, which influences how quickly additional pipeline capacity can be absorbed by the market. According to him, the new volumes should not be seen as a single solution to energy security challenges but rather as part of a broader mix of supply sources that includes pipelines, LNG, renewable energy, and energy efficiency measures. "Security is built through the plurality of sources and routes," Vitiello emphasized.

Discussing Azerbaijan’s role in Italy’s gas supply, Vitiello noted that the country has become one of Italy’s major gas suppliers, with national demand typically ranging between 67 and 68 billion cubic meters annually. He stressed that Azerbaijani gas now plays a structural role in Italy’s strategy to diversify energy imports. In a period when energy security has once again become a central political issue in Europe, the contribution of the Southern Gas Corridor has strengthened the resilience of the Italian energy system and reduced reliance on single supply routes.

Looking ahead, Vitiello emphasized that cooperation between Italy and Azerbaijan could expand further, both in terms of gas supplies and broader energy collaboration. He pointed out that future dialogue may increasingly involve areas related to energy transition, technological exchange, and new investment opportunities. Projects connected with decarbonization, reducing emissions in the gas sector, and developing new energy carriers — including hydrogen, biomethane, synthetic fuels, and ammonia — may become part of this cooperation. In this context, Vitiello noted that bilateral energy relations extend beyond commercial interests and form part of a wider partnership that combines energy security, investment, and the transformation of energy systems. He added that the Mediterranean region has historically served as a bridge for cooperation, and strengthening such partnerships remains essential in an increasingly complex global environment.