Uchenna Izundu
International Editor
LONDON, July 14 -- OOO Eni Energhia will supply 350 million cu m of natural gas to Russian power company TGK-9 by 2010 under sales contracts signed on July 8. The agreement is effective from June 1.
The deal positions Eni as the first European company to enter Russia's downstream market, the second largest consumer in the world, and brings it closer to the target in its 2008-11 strategic plan of selling 900 million cu m in Russia in 2011.
Eni SPA, parent of Eni Energhia, said the Russian gas market was attractive because the government was increasing domestic gas levels to reach parity with European levels net of transportation costs and export taxes.
Eni has sought opportunities to expand its presence in Russia, including a 2007 deal with OAO Gazprom to construct the South Stream gas pipeline that will deliver Russian gas to the European Union across the Black Sea.
Last April, EniNeftegaz consortium also awarded Eni the assets of Lot 2 when Yukos was liquidated, thus entering Russia's upstream industry.
Contact Uchenna Izundu at [email protected].
