Uchenna Izundu
International Editor
LONDON, Apr. 28 -- Independent Resources PLC has signed a partnership agreement with ERG Power & Gas to develop underground storage for as much as 3.2 billion cu m of natural gas at Rivara in northern Italy's Po Valley. Gas will be injected into a deep, naturally fractured reservoir.
The facility will become one of the largest gas stores in Italy and in Europe. It will be developed in three stages, with the first phase becoming available in 2012-13.
ERG will invest €9.5 million in the project to acquire a 15% equity interest in a newly-formed company, which will receive all the assets needed for the strategic gas storage project.
The companies will submit an environmental impact statement to secure a long-term concession by Italy's Ministry of Productive Activities.
Because of a forecasted gas supply deficit, storage is a priority, and the deal will enable ERG to gain a preferential share in future storage capacity.
Schlumberger will manage development activities for the Rivara facility.
Independent Resources also has applied to develop a second gas storage facility with a nominal capacity of 1.5 billion cu m at Canton in northern Italy.
"This application awaits completion of the feasibility studies at Rivara. No other parties are entitled to compete for the Canton facility in the meantime, and provided the commercial viability of Rivara is established, Canton could prove to be an additional valuable asset," Independent Resources said.
Contact Uchenna Izundu at [email protected].
