contract with Gaz de France agreed for the supply of 2 billion cubic metres a year of Libyan natural gas

Eni and Gaz de France yesterday signed in Paris a supply contract for 2 billion cubic metres a year of natural gas from Libya.  

This is part of the 8 billion cubic metres which will be arriving from Libya from 2004 on, the first 4 billion of which have already been sold to Edison. 

The contract is a Take or Pay type and lasts 24 years. 

"With this contract" said Eni Managing Director Vittorio Mincato "we are completing the placement of the gas arriving from the fields which Eni is developing in Libya with its Libyan partner at an investment cost of $5.6 billion. We expect to complete the placement of the remaining 2 billion cubic metres by the end of the year". 

"With this initiative" continued Vittorio Mincato "Eni will be giving a substantial boost to the opening up of the European gas market. A market in which Eni intends to play an increasingly important role.  

Our programme is in fact to develop our gas activities abroad to substitute development in Italy, limited by the ceiling imposed by the Letta decree. Eni trusts that the market shares which will be acquired by our competitors will be accompanied by a suitable level of investment on their part". 

Source:E.N.I.