Switzerland's EGL to buy Iranian gas in 2010

Swiss energy firm EGL has signed a 25-year gas import agreement with National Iranian Gas Export Co. for 5.5 billion cu m/year starting at the end of 2010, an EGL spokeswoman told OGJ.

Uchenna Izundu
International Editor

LONDON, June 12 -- Swiss energy firm EGL has signed a 25-year gas import agreement with National Iranian Gas Export Co. for 5.5 billion cu m/year starting at the end of 2010, an EGL spokeswoman told OGJ.

The gas will be transported through EGL's proposed 10 billion cu m/year Trans-Adriatic pipeline system (TAP), which is expected to start operations by yearend 2010. TAP will link western Greece to Italy via Albania and will deliver Iranian gas to EGL's combined-cycle gas turbine electric power plants in Italy. EGL's first CCGT power plant, Calenia Energia, started operations last month.

"Italy has limited import capacity, and to open the corridor to southern Europe, we have launched a project to connect southern Italy with existing pipelines and those under construction," the spokeswoman said.

The company may sell the gas it imports to its customers such as power plants, industrial customers, and resellers in Italy, Switzerland, and elsewhere in Europe.

Detailed engineering studies are under way for EGL's 513-km gas line that will extend under the Adriatic Sea. EGL is currently looking into regulatory aspects, permits, and financing for the project. It also is talking to other prospective partners to help it construct the line.

Contact Uchenna Izundu at uchennai@pennwell.com.

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