Greece and Italy To Sign Gas Pipeline Agreement

Greece and Italy have signed an agreement for the construction of an undersea natural gas pipeline between the two countries, the Greek Development Ministry said. The 212 km pipeline will be built by Poseidon, a joint venture of Greece's state-owned gas supplier Depa and Italy's Edison SpA, at a total cost of EUR300 million.

The pipeline, which will run from Stavrolimena in northwest Greece to Otranto on Italy's southeast coast, is due to be completed by the end of 2009. It will initially carry 2 billion cubic meters of natural gas a year towards Italy before rising to 8 billion cubic meters a year.

The pipeline will connect another pipeline across Northern Greece, which is being built by Depa at a cost of EUR600 million, to a third that is being built between Greece and Turkey.

The Turkish Energy Minister Hilmi Guler also attended the signing of the agreement in Otranto.

Together the three pipelines will enable Caspian and Central Asian natural gas to be transported to Europe.

All three pipelines are part of the Southern Europe Gas Ring Project.

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Posted 10/11/05

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