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. Last Updated: 07/27/2016

Italy Eyes Russian Gas

MILAN, Italy -- Italy's Edison Gas said Monday it had signed a 20-year contract with Promgas to buy natural gas from Russia.

Promgas is a company jointly held by gas distributor Snam of Italy's Eni group and Gazexport, a unit of Russian gas giant Gazprom. Edison is the energy unit of Montedison.

Edison said in a statement that the 20-year accord is for the initial supply of 1 billion cubic meters of gas by the end of this year, rising to 1.5 billion in 2001 and then 2 billion meters a year from 2002.

Edison said this was the first contract for the purchase of gas from Russia by an entirely private Italian group.

The "take or pay" contract, as is usual for major import contracts in the hydrocarbons sector, envisages purchase prices in line with prevailing world market conditions.

No other financial details were given.