(Updating with further Malacarne comments)
MILAN (Thomson Financial) - Snam Rete Gas SpA CEO Carlo Malacarne said the
group is ready to evaluate opportunities regarding a possible sale of gas
distribution assets by Enel SpA.
"I have no information on the deal but we are ready to evaluate all
possibilities," Malacarne said in a conference call with analysts.
Enel CEO Fulvio Conti recently said his group might consider disposing of
its gas distribution assets in an effort to reduce debt.
Analysts have said the assets could be worth up to 2.5 billion euros.
Asked if Snam might be interested in any possible sale of Italgas
distribution assets, Malacarne said his group is focused on the regulated gas
business in Europe and Europe, adding gas distribution is a regulated activity.
"We are focused at present on organic growth but we are monitoring the
market to see if there could be any accretive operation. We could play a
stronger role in Europe in the future," he said.
Malacarne said he is confident of getting approval by the end of 2010 for
the group's project to expand the capacity of its liquefied natural gas terminal
at Panigaglia from 3.5 billion to 8 billion cubic metres per year.
The Snam CEO noted that the incoming government of Silvio Berlusconi intends
to incentivise gas import infrastructure development and speed up the permitting
process for LNG terminals.
On the GALSI gas pipeline project that will transport Algerian gas through
Sardinia to the Italian mainland, Malacarne said a final investment decision on
the project is expected at the end of 2008 or early 2009.
"We will not include the project in our investment plans until that decision
is taken," he said.
Previously Malacarne has said the Italian tract of the GALSI pipe will cost
Snam 1.4 billion euros.
stephen.jewkes@thomsonreuters.com
sj/lam
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