Snam signs deal with Enagas to study Spain-Italy gas pipeline

MILAN Reuters – Italian gas group Snam said on Thursday it had signed an agreement with Spains Enagas to look into the idea of building an offshore gas pipeline between the two countries.

The move comes as Europe scrambles to diversify its supply mix and wean itself off Russian gas following Moscows invasion of Ukraine.

Spain has the largest regasification capacity in Europe but transporting the gas into Europe across the Pyrenees has been a problem because of bottlenecks.

“Snam is working to take the necessary initiatives to contribute to energy security and to support the diversification of energy supply in Italy,” its new Chief Executive Stefano Venier said when commenting on firstquarter results.

Europes biggest gas pipeline group said its core earnings in the first three months rose 5.2 to 588 million euros 618 million, boosted in part by higher volumes of transported gas.

The group, which runs nearly all of Italys gas transport and storage business, said it expected gas demand in Italy this year to fall due in part to the increase in energy prices.