Norwegian Gas Begins to Flow in Italy
A ceremony took place in Milan on October 26th to mark the start of supplies of Norwegian gas to Italy in accordance with the agreement with the gas company Snam.
King Harald and the Norwegian minister for trade and industry, Ansgar Gabrielsen, were present at the ceremony, along with representatives from the Norwegian and Italian authorities and top management from Eni, Snam and Statoil. Since October 1st, Statoil and other Norwegian gas has flowed to the Italian market. The Snam agreement which was signed in 1997, calls for Statoil to deliver around 100 billion cubic meters of gas up to 2025. This figure also includes amounts from the state's direct financial interest (SDFI).
The Italian gas market is experiencing strong growth. Demand is expected to increase gradually by 65 percent, from 61 billion cubic meters in 2001, to 101 billion cubic meters in 2015, according to figures from the international consulting company Wood Mackenzie. A significant part of this increase is due to the fact that more gas is needed for generating electricity at gas-fired power stations.
"We will ensure that Norwegian gas is a reliable source to meet Italy's energy needs," said Peter Mellbye, executive vice president of Statoil's Natural Gas business area, during the ceremony in Milan.