This deal is a unique opportunity for Gazprom to enter the Portuguese gas market as well as markets in other Southern European countries.
Photo: Vasily Deryugin
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Gazprom to Send Gas from Algeria to Southern Europe
Gazprom plans to buy 7 percent in Portugal’s Galp Energia oil and gas firm for ˆ345 million, sources of Kommersant reported. Industry experts say that the Russian gas giant will keep increasing its holding in the company to use a unique opportunity of working with end-users in Portugal and on other South European markets as well as shipping gas from Algeria.
Gazprom is close to securing a deal with Amorim Energia which owns 33.34 percent in Galp Energia. Officials at the Russian firm would not confirm the reports, but a source in the company told Kommersant the deal would be finalized very soon.
First reports of Gazprom’s plans to acquire a share in Amorim Energia appeared last August in an interview of the company’s co-owner Americo Amorim with Diario de Noticias. In November, Portuguese newspapers wrote that Gazprom is planning to buy 6.6 percent in the company.
Galp Energia was originally set up as a state-owned holding to manage Portugal’s gas transport assets. The company later acquired stakes in several oil firms. Galp Energia is owned by Eni and Amorim Energia.
A stake in Galp Energia looks a particularly lucrative asset as the company holds a quota for gas supplies through MEDGAZ, a gas pipeline which is being built to connect Algeria with Spain. The pipeline with the annual capacity of 8 billion cu. meters of gas is to be put into operation in 2009. The MEDGAZ may be later linked to another pipeline to send gas to Portugal and France. This deal is a unique opportunity for Gazprom to enter the Portuguese gas retail market as well as markets in other Southern European countries.
Analysts expect Gazprom to enlarge its shareholding in the company after buying the stake.
www.kommersant.com
All the Article in Russian as of Mar. 12, 2007
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