Gazprom Deal With Italians (Folo) Liberalize Energy Market? EU Looks Again Inroads By Russia and Algeria Raise Fears

Gazprom’s Nord Stream venture signed a letter of intent Tuesday with Saipem of Italy to build a natural-gas pipeline under the Baltic Sea from Russia to Germany, Bloomberg News reported from Moscow.

Saipem, one of the largest European oil-field services contractors, beat two rival bids for the 1,200-kilometer, or 720- mile, pipeline, a Nord Stream spokeswoman said. She declined to name the competing companies.

Western European countries are seeking new supply routes and sources for fuel, such as gas, to run power plants.

Gazprom and Saipem’s parent, Eni, announced plans in June to build the South Stream pipeline to bring gas through southeastern Europe.

Originally published by Bloomberg News.

(c) 2007 International Herald Tribune. Provided by ProQuest Information and Learning. All rights Reserved.