Eni wins gas price cut from Russia
Milan, May 24, 2014
Russia's Gazprom reached an agreement with Eni yesterday giving the Italian oil major a cut in the price it pays for Russian gas, days after Moscow clinched a groundbreaking gas deal with China.
The agreement, signed by the groups' chief executives in the Russian city of St Petersburg, envisages "an important change" in the price-indexation mechanism used in the contracts to align prices fully with the market, Eni said in a statement.
Eni periodically renegotiates its long-term gas contracts with Russia and other major suppliers to take account of the mismatch between spot prices and long-term prices linked to oil.
Eni, one of Europe's biggest gas wholesalers, previously renegotiated its contracts with Gazprom last year, securing a price cut estimated to be under seven per cent.
Italy, which imports around 90 per cent of its gas needs, received some 40 per cent of its imported gas from Russia last year.