Edison and Depa to hold open season on IGI expansion by mid 2008
Italy’s Edison and Greek Depa signed a declaration of intent this month to form the jointly-held company Poseidon Co. by March this year, according to a statement published by the Italian utility. Poseidon Co. will launch an open season by mid-2008 for the possible expansion of the 8 billion cubic metre/year pipeline, which will run between Italy and Greece and then link up to Turkey.
Edison told Heren Energy that specific details of the expansion had not been decided as these would depend on the outcome of the open season and on interest from the market.
While the original capacity on the IGI pipeline has been reserved by Edison (80%) and Depa (20%) for 25 years, Edison said the open season aimed at expanding the capacity of the IGI to allow third parties to access the pipeline. It said this would, in turn, increase gas volumes sold to the Italian gas hub, PSV, and help give rise to an Italian gas futures market.
The pipeline is slated for operation by 2012 and is expected to be supplied by Azeri gas. Both companies plan to tap the massive gas reserves of the Caspian Basin and the Middle East, which hold over 20% of the world’s gas reserves.
A pending import decree will force all natural gas importers in Italy to offer 10% of their imported volumes at the PSV.
Other Related Stories
