European Governments Sign New Energy Deal

It is hoped a new natural gas corridor, being created to link Turkey and Greece to the Caspian Basin and the Middle East, will help increase competition in the Italian energy market, Italian energy company Edison SpA's CEO says.

The pipeline, which will transport gas from where 20% of the world's reserves are found, was given the go ahead yesterday after government ministers signed off on the agreement to support the companies proposals.

Italian energy provider Edison SpA, along with Depa and Desfa in Greece and Botas in Turkey, has been awarded the tender for the project.

The 800km pipeline, at a predicted cost up to €500m is expected to start production in 2012.

Edison Chief Executive Officer Umberto Quadrino says it will also be the first time importation infrastructure has been developed independently of the traditional Italian operator, which will, in turn, boost competition in the nation.

"This intergovernmental agreement is a step of fundamental importance for the construction of a project that is highly significant for Italy and Europe as a whole," Quadrino says.

"The gas pipeline constitutes a key component for the development of an interconnection system that crosses all of Southern Europe."

By staff writer