Greek-Italy IGI pipeline to offer TPA; construction to begin in 2008
The Greek-Italian gas pipeline IGI will offer incremental pipeline capacity to third parties, Italian utility Edison announced.
Following a ministerial meeting between Italy’s minister for economic development, Pierluigi Bersani, and his Greek counterpart on Wednesday, during which a protocol of understanding of the pipeline project was signed, capacity holders, Edison (80%) and Depa (20%) agreed to offer an undisclosed amount of third party pipeline capacity. They also agreed to increase swaps of gas on the Italian OTC market (Punto Scambio Virtuale), which they hope will support the founding of a gas exchange. The exact amount of TPA was not disclosed.
“Edison and Depa have already started negotiations with some producing countries in the Caspian Sea basin and with those that will be crossed by the pipeline,” read an Edison statement. Edison and Depa were awarded transmission capacity on IGI for 25 years.
The 8 billion cubic metre/year pipeline is due to be completed in 2011, while construction is expected to begin in 2008. Edison said that the protocol of understanding will speed up the construction time of the pipeline, although the project was originally due to be completed in 2010. DL
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