TAG Pipeline Could Merge with Snam

Chairman of Cassa Depositi e Prestiti (CDP) Franco Bassanini has said that the TAG pipeline could be merged with the Snam gas transport network, following the company's acquisition of a 30 per cent stake in Snam.

Speaking to reporters in Italy, Mr. Bassanini said such a move would make sense in light of the acquisition.

"It is obvious that it would be logical for TAG to be merged with Snam," he said.

The Trans-Austrian gas pipeline (TAG), which is controlled by CDP, connects Italy and Austria, bringing Russian gas supply to both countries.

CDP holds an 89 per cent stake in the TAG pipeline following an acquisition from Eni last year. Austrian company OMV holds the remaining 11 per cent stake.

Yesterday saw CDP taking over another substantial stake from Eni in national pipeline operator Snam yesterday. CDP will take a 30 per cent stake in Snam, out of Eni's total 52.5 per cent stake in Snam, for a consideration of €3.52 billion, which will be paid in three tranches.

The stake in Snam was sold to ensure competition in Italy's gas market and the separation of its distribution networks from its sale and production arms.