Eni & Gazprom Ink Strategic Agreement
Eni CEO Paolo Scaroni and Gazprom CEO Alexey Miller signed a broad strategic agreement between the two companies today in Moscow.
The agreement sets up an international alliance enabling the two companies to launch joint projects in the mid and downstream gas, in the upstream and in technological cooperation.
Mid and Downstream gas
Gazprom will extend the duration of its gas supply contracts to Eni until 2035, confirming Eni as the world's single largest customer of Gazprom.
Through this agreement, starting from 2007, Gazprom will sell directly into the Italian market increasing volumes of gas (which are part of volumes currently sold to Eni), building up to some 3 billion cubic meters from 2010 for the entire duration of the long term supply contract.
Eni and Gazprom have identified major projects (companies and assets) in Russia and outside of Russia that will be jointly owned by the two companies. Eni and Gazprom have agreed to work with each other on an exclusive basis on these projects, which are expected to be finalized by the end of 2007.
Technological Cooperation & Development
Eni and Gazprom will sign specific agreements in the following areas:
- Long-distance gas transportation. In this sector Eni and Snam Rete Gas will provide their know-how and expertise, including proprietary transport technology TAP (high pressure transmission) for the development of Russia's gas transportation system.
- Development of LNG projects for the global gas market.
Commenting on the agreement Eni CEO Paolo Scaroni said: "This is a historic agreement.
The new strategic alliance between Eni and Gazprom has been made possible by our
unique relationship which dates back over 50 years and will encompass the next 30 years
involving all the business areas of both companies. The agreement signed today is a
major step towards the security of energy supply to our Country".
- US House Opposes Russian Gas Pipeline (Dec 11)
- Gazprom's Second Quarter Profit Soars On Rising Energy Prices, Sales (Aug 29)
- Russian Gas Exports Hit a New Summertime Record (Jul 17)
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