Europe may turn back to coal following reduced Russian gas

Europe's major gas companies are in a race to find alternative fuel supplies and could burn more coal to cope with the reduced Russian gas flows that threaten an energy crisis in upcoming winter if stores are not refilled.

Germany_ Italy_ Austria and the Netherlands have all hinted that coal-fired power plants could help see the continent through a crisis that has sent gas prices soaring and added to the challenge faced by policymakers battling inflation.

Italian oil and gas company Eni said it was notified by Russia's Gazprom that it would receive only part of its request for gas supplies on Monday. The move by Gazprom pushes Italy closer to declaring a state of alert that will trigger gas saving measures.

Germany has also experienced lower Russian flows and it has declared its latest plan to boost gas storage levels and said it could resume coal-fired power plants that it had aimed to phase out.

The CEO of Germany's largest power producer RWE_ Markus Krebber_ said it might take three to five years to fall back the energy prices to lower levels.

Russian gas flows to Germany through the Nord Stream 1 pipeline were still running at about 40% of capacity on Monday.

Italian Eni and German Uniper were among European companies that said they were receiving less than contracted gas volumes from Russia_ although Europe's gas inventories are still filling - albeit more slowly.

They were about 54% full on Monday against an EU target of 80% by October and 90% by November.

Bringing back coal-fired power plants could add up to 10GW of capacity in case gas supply hit critical levels_ German economy ministry said. A law related to the move will be sent to the upper house of parliament on July 8.