Italy is one of the key export markets for Gazprom Group. In 2015 it ranked third in supply volumes among Western European countries. ENI, founded in 1953, is Gazprom Group’s main partner in the Italian market.
Gazprom Group supplies natural gas under three long-term contracts with ENI. Gas is also exported to other companies operating in the Italian market, such as Sinergie Italiane, Axpo Trading AG, ERG, and AEMME Linea Energie.
In addition, Russian gas is delivered to Italy through subsidiaries JSC Promgaz (established on a parity basis by Gazprom and ENI in June 1993; Gazprom bought out ENI’s stake in late 2011) and PremiumGaz (established in 2008 with A2A S.p.A. and Iride S.p.A).
Natural gas supply to Italy in 2015, under all contracts, came to 24.42 bcm. A total of around 586.48 bcm has been supplied to this country since 1974.
Gazprom and ENI jointly implemented the Blue Stream project within their strategic alliance based on the Agreement signed in 1998. The pipeline system is operated by a dedicated Russian-Italian company called the Blue Stream Pipeline Company. The gas pipeline’s capacity is divided between Gazprom and ENI on a 50/50 basis. In 2010, the pipeline reached its designed capacity of 16 bcm per annum.
On February 24, 2016, the Memorandum of Understanding was signed among Gazprom, DEPA, and Edison on natural gas deliveries across the Black Sea from Russia via third countries to Greece and from Greece to Italy in order to establish a southern route to deliver Russian natural gas to Europe.