Italian conglomerate ENI and Gaz de France signed a supply contract for 2 billion cubic meters of natural gas annually from Libya.
The gas is part of the 8 billion cubic meters that will be arriving from Libya beginning in 2004. The first 4 billion cubic meters of gas already have been sold to Edison.
The ENI-Gaz de France contract is a take or pay arrangement that will last for 24 months. With this contract, ENI officials said the company was completing the placement of gas arriving from the fields that ENI is developing in Libya with its Libyan partner at an investment cost of $5.6 billion.
ENI expects to complete the placement of the remaining 2 billion cubic meters of gas by year-end.