ENI CEO: Nord Stream 2 Would Raise Gas Prices in Italy

Reuters

BRUSSELS, May 23 (Reuters) - Italian gas prices will increase if the Nord Stream 2 pipeline is built to double the amount of gas Russia pumps to Germany, the CEO of Italian oil and gas major Eni said on Monday.

Hinting at the political divisions that the pipeline has sparked within the European Union, Eni CEO Claudio Descalzi said it was a project that would advantage northern members of the 28-nation bloc, while Italy may face higher transit fees.

"It is really a pipeline for the north of Europe," Descalzi said. "The impact of North Stream 2 ... is clearly that we are going to create a stronger hub in the north and we are going to create a higher price for the south of Italy."

Gazprom and its European partners, including E.ON , Wintershall, Shell, OMV and Engie, agreed the project last year.

But many east European countries, and the United States, oppose the pipeline, saying it could limit supply routes and the energy security of the EU, which gets a third of its gas from Russia.

Nord Stream 2 would add a second twin subsea pipeline across the Baltic Sea from Russia to Germany, doubling capacity of the existing Nord Stream link to 110 billion cubic metres per year.

(Reporting by Alissa de Carbonnel, editing by David Evans)

Copyright 2016 Thomson Reuters. Click for Restrictions.

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