Italian energy company ENI Spa is to start renegotiation of its long-term natural gas contracts with Algeria and will soon begin the same with Libya, said chief executive Paolo Scaroni, as spot prices of the fossil fuel remain low.
Renegotiation “windows” are allowing the Italian oil and gas company to take this step, said Scaroni on a conference call to comment on the company’s second-quarter results, according to Algerian and Libyan media sources.
Eni is not only renegotiating the price in these long-term contracts, but also the take-or-pay conditions, he said. The Rome-based company earlier this year renegotiated its long-term gas contracts with Russia’s Gazprom. The next renegotiation “window” with Gazprom is in January 2012, said Scaroni.
