ENI, which was created in 1953, is Gazprom Group’s main partner on the Italian market. The company’s corporate structure has three business divisions: Exploration & Production, Gas & Power, and Refining & Marketing. Gas purchases and sales are made by ENI Gas & Power S.p.A., which is a part of the second division. Gazprom Group supplies natural gas under three long-term contracts with ENI.
Also, gas delivery to Italy are carried out by other companies operating in its market, such as Sinergie Italiane, EGL, ERG. In addition, Russian gas shipments to Italy are also conducted through the joint ventures JSC Promgaz (which was created on a parity basis by Gazprom and ENI in June 1993) and PremiumGaz (created in 2008 jointly with A2A S.p.A. and Iride S.p.A.
In 2011, 17.08 billion cubic meters of natural gas were delivered to Italy under all contracts. About 500 billion cubic meters of Russian natural gas have been shipped to this country since 1974.
Gazprom and ENI have been jointly implemented the Blue Stream project within their strategic alliance based on the Agreement signed in 1998. The pipeline system is operated by a special-purpose 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 billion cubic meters.
Gazprom/Gazprom Export signed a Strategic Partnership Agreement with ENI on November 14, 2006. As a result, since April 1, 2007, Gazprom Group has also been able to make direct Russian gas deliveries to the Italian market through the ENI company’s concession of its TAG gas pipeline capacities and gas volumes to Gazprom Export. Delivery volumes reached 3 billion cubic meters per year by 2010. The document also provides for extending the current Italian gas delivery contracts till 2035.
In accordance with its strategy of selling natural gas at either the Italian border or directly on that country’s market through created joint ventures, Gazprom is negotiating with major wholesale purchasers operating on the Italian market.
On June 23, 2007, Gazprom and ENI signed the Memorandum of Understanding on implementation of the South Stream project. The Memorandum stipulates the directions of cooperation between the two companies in designing, financing, construction and management of the South Stream.
The special purpose company South Stream AG was registered in Switzerland on January 18, 2008. Gazprom and ENI founded the company on parity basis.
On May 15, 2009, Gazprom and ENI signed the second Amendment to the Memorandum of Understanding (signed on June 23, 2007) concerning further steps on implementation of the South Stream project. This document envisages the increase in productivity of the offshore section of the gas pipeline from 31 to 63 billion cubic meters per year.
European price correction agreements signed – 17.01.2012