Snam signs deal with Enagas to study Spain-Italy gas pipeline & More News Here

A view of a piece of a Snam gas compressor station close to the entry level of Russian gas shut to the Austrian border in Malborghetto, Italy on this undated handout image. Snam/Handout by way of REUTERS

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MILAN, May 12 (Reuters) – Italian gas group Snam (SRG.MI) mentioned on Thursday it had signed an settlement with Spain’s Enagas (ENAG.MC) to look into the concept of constructing an offshore gas pipeline between the 2 international locations.

The transfer comes as Europe scrambles to diversify its provide combine and wean itself off Russian gas following Moscow’s invasion of Ukraine.

Spain has the most important regasification capability in Europe however transporting the gas into Europe throughout the Pyrenees has been an issue due to bottlenecks.

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“(Snam) is working to take the necessary initiatives to contribute to (energy) security and to support the diversification of energy supply in Italy,” its new Chief Executive Stefano Venier mentioned when commenting on first-quarter outcomes.

Europe’s largest gas pipeline group mentioned its core earnings within the first three months rose 5.2% to 588 million euros ($618 million), boosted partly by larger volumes of transported gas.

The group, which runs almost all of Italy’s gas transport and storage enterprise, mentioned it anticipated gas demand in Italy this yr to fall due partly to the rise in vitality costs.

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($1 = 0.9517 euros)

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Reporting by Stephen Jewkes; modifying by Agnieszka Flak

Our Standards: The Thomson Reuters Trust Principles.

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