Dietikon, Tehran, Monday, March 17, 2008
Executives of Swiss-based EGL Group and their counterparts of the National Iranian Gas Export Company (NIGEC) today signed a final long-term agreement in Tehran that will allow EGL to bring natural gas from Iran to Europe as early as next year.
The final contract between EGL and NIGEC follows the preliminary agreement concluded by the two companies in November 2006, which has already been announced by EGL as part of the expansion of its natural gas procurement portfolio. Since then, all the details of the preliminary agreement have been incorporated in the final contract, whose signing today was also attended by the Swiss Federal Department of Foreign Affairs.
The duration of EGL's natural gas procurement contract with NIGEC is 25 years. The contracted gas quantities will allow EGL to cover its 50 percent share of transportation capacity of the Trans Adriatic Pipeline (TAP), which it will build together with Norway's StatoilHydro ASA. The contract will also secure long-term supply for Italy and Switzerland, as well as help diversify gas supplies to Europe.
A first delivery of natural gas by NIGEC to EGL is planned for 2009, assuming the necessary gas transport rights will be in place by then. Larger gas volumes will follow in 2012, when the TAP project is expected to become operational and gas deliveries from NIGEC will reach as much as 5.5 billion cubic metres/year in a second phase of the contract.
EGL will use more than half of the gas delivered by NIGEC in the second phase to supply the gas-fired combined-cycle power plants it operates in Italy. The deliveries will also allow EGL to develop its portfolio of natural gas customers in Italy. Additional gas marketing opportunities are available in Switzerland.
Joachim Conrad, member of EGL's Executive Management and Head of EGL's Gas Division, said today's signing of the Gas Sales and Purchase Agreement with NIGEC is a strategic milestone in the company's gas business.
"Natural gas from Iran is necessary to the opening of a fourth gas transportation corridor to Europe," Mr. Conrad said. "This corridor will ensure diversification and security of supply on the continent as Europe needs to tap into new gas sources in the immediate future, and EGL today made an important contribution to reaching this goal."
Further information
EGL Group
Lilly Frei, Head of Corporate Communication
Tel. +41 44 749 40 10
lilly.frei@egl.eu
EGL Gas Purchase Agreement NIGEC
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