New European company to acquire gas from Shah Deniz 2
Italy’s Edison and Gas Natural Fenosa have signed a binding agreement for the acquisition by Edison of Gas Natural Vendita Italia and of Azerbaijan’s Shah Deniz II gas contract, said the message posted on Edison’s website.
As part of the agreement and subject to the closing of Gas Natural Vendita Italia’s acquisition, Edison will also acquire an 11 TWh long term gas supply contract from the Shah Deniz II field.
In particular, the total consideration payable is 30 Million Euros for the gas supply contract, of which a down payment of 10 Million Euros and an earn-out of 20 Million Euros, payable starting from 2021 subject to the first delivery of gas to Italy through the TAP pipeline.
Edison will acquire 100 percent of Gas Natural Vendita Italia (GNVI), the company owned by Gas Natural Fenosa, that commercializes natural gas and electricity across Italy. The purchase price is 192.8 million euros corresponding to an enterprise value of 263 million euros after debt repayment and provision.
Azerbaijan to support OPEC+ deal extension
Azerbaijan will support the extension of the OPEC+ agreement, if the decision is made, said Azerbaijani Energy Minister Parviz Shahbazov.
“Azerbaijan always takes the fulfillment of undertaken international obligations extremely seriously. The OPEC+ deal is no exception. The stability of the oil market is in the interests of our country. This is why we joined this initiative,” he told reporters in Baku.
“Time has shown that the Vienna agreement paid off. This is a great achievement.”
Shahbazov noted that the next OPEC meeting at the ministerial level will be held in November 2017.
“If we receive an invitation, we will certainly coordinate our participation with the country's leadership and consider the invitation,” Shahbazov added.
Details of IGB fulfillment plan to bring Azerbaijani gas to Bulgaria disclosed
The fulfillment plan for the Interconnector Greece-Bulgaria (IGB) is under final alignment, Teodora Georgieva, executive officer at ICGB AD joint venture company, the project’s operator, told Trend.
She noted that the Project Fulfillment Plan includes upcoming major steps for ensuring the start of the pipeline’s construction, amendment of the Innovations and Competitiveness (OPIC) program by including ICGB as a beneficiary of grant from Greece, exemption, tender launching procedures, etc.
"The construction of IGB is planned to start in 2018. After adoption of the decision for exemption, which is expected for next year, we will be able to submit for a building permit in Greece," added Georgieva.
On September 12, Bulgaria’s Ministry of Regional Development and Public Works issued a permit for construction of IGB on Bulgaria’s territory.
The permit was issued for construction on the territory of Stara Zagora, Haskovo and Kardzhali districts.
IGB is a gas pipeline, which will allow Bulgaria to receive Azerbaijani gas, in particular, the gas produced from Azerbaijan's Shah Deniz 2 gas and condensate field. IGB is expected to be connected to the Trans Adriatic Pipeline (TAP) via which gas from the Shah Deniz field will be delivered to the European markets.
The initial capacity of IGB will be 3 billion cubic meters of gas. The project’s cost is estimated at around 240 million euros.