Today, at the Gazprom Headquarters, Alexey Miller, Chairman of the Gazprom Management Committee and Paolo Scaroni, Chief Executive Officer of ENI have inked an Agreement on strategic partnership.

Under the accord reached, Gazprom receives the opportunity to launch from 2007 direct Russian gas deliveries to the Italian market. The supply amount will be gradually growing to some 3 bcm/y by 2010. The Agreement contemplates extending existing contracts for gas supply to Italy till 2035.

Pursuant to the Agreement, the parties agreed to work through investment projects in the gas exploration and production sector of Russia and third countries.

In addition, the Agreement fosters the cooperation between the companies when laying new and developing existing gas transmission routes, including within the Blue Stream project, as well as interaction in the LNG and new gas transportation technology areas.

Reference:

The natural gas market of Italy is the third-largest in Europe after the Great Britain and Germany. The share of gas in the Italian primary energy mix exceeds 30 per cent. In 2005 Italy had imported approximately 86% of its natural gas requirements, with the bulk coming from Algeria and Russia.

Italy is the second-largest importer of Russian gas in Europe.

In 2005 Gazprom Group supplied Italy with 22 bcm of gas.

Gazprom and ENI are jointly engaged in the Blue Stream project (Blue Stream is an offshore gas pipeline used for direct deliveries of Russian gas to Turkey under the Black Sea). To finance, construct and operate the pipeline, Gazprom and ENI created the Russia-Italy Blue Stream Pipeline Company joint venture. Blue Stream was brought online in early 2003. Over 2005 the pipeline carried to Turkey 5 bcm of Russian gas, with about 7 bcm slated for 2006.