Russian gas monopoly to expand in Italy

Russia's Gazprom company is to expand its activities in Italy, RIA Novosti was told at Gazprom's press-service. On the day before, Gazexport director-general Oleg Sienko and Gazprom's overseas ties department chief Stanislav Tsygankov, on the company's behalf, signed a memorandum of understanding with Italian company ENEL FTL SpA.

Under the document, it was noted at the press-service, the sides agreed to negotiate conditions for the purchase and sale of Russian natural gas on a long-term basis. In particular it is supposed to discuss the possibility of concluding a contract between Gazexport and ENEL FTL SpA for a period of 20 years to effect direct deliveries of Russian gas, at 3 billion cubic metres a year.

If the deal between Gazprom and ENEL FTL SpA goes through, total exports of natural gas from Russia to Italy will exceed 30 billion cubic metres a year by the end of the current decade, it was stressed at Gazprom's press-service.

ENEL FTL SpA is a subsidiary of the biggest Italian company in the energy generation and distribution sector ENEL SpA. ENEL FTL SpA supplies ENEL SpA's requirements in different fuels.

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&to=http://www.gazprom.ru/eng/default.htm' target=_blank>GAZPROM

&to=http://www.enel.it/gruppo_eng/gr_lesocieta.htm' target=_blank>ENEL FTL SpA