THE WALL STREET JOURNAL: Italy's ERG, Shell Announce Italian LNG JV –Source  (ShellNews.net) 23 Feb 05

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MILAN (MF-Dow Jones)--Italy's ERG SpA (ERG.MI) and Royal Dutch/Shell (RD SC) will announce later Wednesday plans to build a liquefied natural gas terminal in Italy, a person familiar with the situation told MF-Dow Jones.

The two energy companies will invest around EUR500 million in the project, to be structured as a joint venture with each partner owning 50%, the person said.

The terminal will be built in Sicily, the person added.

Italy currently has one LNG terminal in Sicily, which is owned by Eni SpA (E).

Another terminal, backed by Enel SpA (EN) and BG Group Plc (BRG) is being designed and constructed in the Adriatic port of Brindisi.

-MF-Dow Jones; +39-02-58-21-99-00; chris.emsden@dowjones.com

 
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THE WALL STREET JOURNAL: Shell , ERG Confirm Italian LNG JV: 23 Feb 05

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Edited Press Release

LONDON -- Shell Energy Europe B.V. and ERG Power & Gas S.p.A. said Wednesday that they have signed an agreement for the development of a regasification terminal for Liquefied Natural Gas (LNG) in Italy.

The envisaged site for the terminal is the industrial area of Priolo/Augusta/Melilli in the province of Syracuse in Sicily.

The terminal is planned for a capacity of ca. 8 billion cubic meters of gas per year and will require an investment of EUR400 million.

Subject to the permitting process, construction is envisaged to begin in 2007 and the terminal is expected to be operational in 2010. The terminal will be developed according to the highest international technical and environmental standards.