Governments Throw Support Behind Inter-Nation Pipeline

A new offshore natural gas corridor, passing through Turkey and Greece from the Caspian Basin and the Middle East – where 20% of the world's reserves are found – was given the go ahead yesterday after government ministers signed off on the agreement.

The 800km pipeline, at a predicted cost up to €500m, is expected to start production in 2012.

Italian energy provider Edison SpA, along with Depa and Desfa in Greece and Botas in Turkey, has been awarded the tender for the project.

Edison Chief Executive Officer Umberto Quadrino says it will also be the first time importation infrastructure has been developed independently of the traditional Italian operator, which will, in turn, boost competition in the nation.

"This intergovernmental agreement is a step of fundamental importance for the construction of a project that is highly significant for Italy and Europe as a whole," Quadrino says.

"The gas pipeline constitutes a key component for the development of an interconnection system that crosses all of Southern Europe."

By staff writer