Tuesday, September 02, 2014

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Eni and Gazprom to Revise Gas Supply Contract

South Stream Pipeline (Source: Gazprom)
South Stream Pipeline (Source: Gazprom)

Italian major Eni and Russian giant Gazprom yesterday reached an agreement to revise the prices agreed in a gas supply contract between the two companies. 

The agreement will see Eni join a number of European customers who have succeeded in securing a reduction in gas prices from Gazprom in recent months.

A statement from Eni says that the revision of the price for gas supply specified in a contract between it and Gazprom would strengthen the relationship between the two and increase Gazprom's standing in the market.

"Gazprom and Eni further consolidate their commercial relationship, contributing to the competitiveness of Russian gas in the European market and helping to strengthen security of supply," the statement said. 

A statement from Gazprom said the revision would see the companies adjusting "the terms and conditions for Russian natural gas supplies to Italy," though exact details of those adjustments were not revealed.

The agreement was reached at a meeting between CEO of Eni Paolo Scaroni and CEO of Gazprom Alexey Miller, during which a range of issues and topics were raised.

During the meeting, the two men also discussed the new schedule for the South Stream project, which is due to begin construction by the end of this year. 

Eni is the second largest shareholder in the South Stream project--after Gazprom--with a 20 per cent stake. Gazprom holds the majority share in the project at 50 per cent and Wintershall Holding and GDF Suez hold the two remaining 15 per cent stakes.

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