Thursday, February 01,

"Poseidon Pipeline Project" Will Link Italy to Middle East Gas Energy

The ANNOTICO Report

 

The EU will finance 40% of a pipeline between Greece and Italy to diminish dependence on Russian Energy, and a void the possibility of a repetition of  disputes like last year between Russia and its former satellites over gas pricing that disrupted supplies.

 

The Pipeline originating in Azerbaijan and transiting Georgia and Turkey will complete the segment between Turkey  to Greece in 2008.

 

Greece and Italy Sign a Deal on Azeri (Azerbaijan) Gas

APA News Agency                                                                                                                                  

Azeri-Press Information Agency
February 1, 2007


Italy and Greece have concluded a cooperation agreement on construction of a natural gas pipeline linking Greece with Italy is due begin in June 2008, with completion slated for 2011, giving the European Union access to Caspian Sea and Middle East natural gas, the APA reports quoting AFP.

The Poseidon project is being promoted amid intensifying European debate over long-term energy supply and the diversification of sources of supply of natural gas.
The EU is the worlds biggest energy importer, with outside sources, notably Russia, supplying 40 percent of its gas and a third of its oil.
The Italy-Greece projects significance is considered largely political, a demonstration of European will to reduce outside dependence, following a series of disputes last year between Russia and its former satellites over gas pricing that disrupted supplies. In January, the 27-member bloc unveiled a new energy action plan for cultivating non-Russian suppliers and alternative energy sources.
The euro300 million (US$390 million) link is one of a series of projects being promoted by the EU to reduce the 27-nation blocs dependence on Russian natural gas, most of which is now piped through Ukraine. The EU will fund up to 40 percent of the cost.
The initial 8bn cubic meters of transmission capacity of the gas pipeline between Italy and Greece will be 80 pct reserved to Edison SpA and 20 pct to Depa for 25 years.
Baku-Tbilisi-Erzurum pipeline (Azerbaijan-Georgia-Turkey) delivering Azeri gas from Shah Deniz has been constructed. An additional arm linking Turkey and Greece will be attached to this pipeline in 2008. /APA/

 

 

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