Eni to Completely Withdraw from Snam

Italian Minister for Industry Passera Corrado has said that energy company Eni will completely withdraw from pipeline operator Snam, as part of the unbundling of the country's gas market.

Speaking to Italian newspaper Il Sore 24 Ore Sunday yesterday, Minister Corrado said that the government was looking at withdrawing in the best manner for shareholders.

"Eni will withdraw entirely from the group Snam," he said. "With the Treasury we are identifying the best way for all shareholders.

"The separation shows the interest of everyone to have the transport infrastructure and gas trust in a wholly independent company and dedicated to bringing increased competition in the market, which can become a star of European networks."

The Minister said that major shareholder Cassa Depositi e Prestiti (CDP), a government-controlled investor, would play a role in the separation and withdrawal, but said that electricity company Terna would not be involved despite rumours.

"CDP is Eni's shareholder, hence the reference interlocutor," he said. 

"Terna is a successful case of a company that is making an important contribution to the development of another market, which is electricity. We never considered connecting these two areas."

Snam is currently a subsidiary of Eni, which holds a 52 per cent stake in the company. Under EU competition directives and the Italian government's implementation of the same, the companies will be split to ensure competitivity in the market.