MOSCOW, September 26 (RIA Novosti) - Russian energy giant Gazprom and Italian firms A2A and Iride on Friday signed an agreement to set up a joint venture and clinched a long-term deal for natural gas deliveries, the companies said in a statement.
The joint statement said the new venture would handle the sale of the agreed natural gas deliveries on the Italian market.
Under the supply contract, Gazprom, represented by Gazprom Export and ZMB GmbH, is to provide 900 million cubic meters annually, and the volume can be increased in subsequent years.
The contract will be effective from October 1, 2008, and run until 2022, with an option to extend for a further five years.
To form the joint venture, A2A and Iride will create a corporate vehicle (70% A2A and 30% Iride), which in turn will be the 50% partner of the world's largest natural gas producer in the JV.
Gazprom will appoint the chairman of the joint venture, while the managing director will be chosen by A2A.
