Murano glassblowing model shattered by methane price surge

VENICE, Italy (AP) — The glassblowers of Murano have survived plagues and pandemics. They transitioned to highly prized artistic creations to outrun low-priced competition from Asia. But surging energy prices are shattering their economic model.

The dozens of furnaces that remain on the lagoon island where Venetian rulers transferred glassblowing 700 years ago must burn around the clock, otherwise the costly crucible inside the ovens will break. But the price for the methane that powers the ovens has skyrocketed fivefold on the global market since Oct. 1, meaning the glass-blowers face certain losses on orders they are working to fill, at least for the foreseeable future.

“People are desperate,” said Gianni De Checchi, president of Venice’s association of artisans Confartiginato. “If it continues like this, and we don't find solutions to the sudden and abnormal gas prices, the entire Murano glass sector will be in serious danger.”

A medium-size glassblowing business like that of Simone Cenedese consumes 12,000 cubic meters (420,000 cubic feet) of methane a month to keep his seven furnaces hissing at temperatures over 1,000 degrees Celsius (1,800 degrees Fahrenheit) 24 hours a day. They shut down just once a year for annual maintenance in August.

His monthly bills normally range from 11,000 euros to 13,000 euros a month, on a fixed-price consortium contract that expired Sept. 30. Now exposed to market volatility, Cenedese is projecting an increase in methane costs to 60,000 euros ($70,000) in October, as the natural gas market is buffeted by increased Chinese demand, uncertain Russian supply and worryingly low European stockpiles.

Artisans like Cenedese now must factor in an insurmountable increase in energy costs as they fill orders that had promised to lift them out...