Italy's new gas bourse may struggle-traders

Mon Jul 13, 2009 5:49pm BST
 
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* Eni's dominant position the main obstacle for new bourse

* Wide range of contracts needed to attract traders

By Svetlana Kovalyova

MILAN, July 13 (Reuters) - Italy's long-awaited launch of a gas bourse is a key step toward boosting trading but will succeed only if strong competition cuts the dominant position of oil and gas major Eni (ENI.MI), energy market operators said.

Italy aims to start the bourse within six months to increase market transparency, encourage competition between operators and trim consumers' energy bills. As in many European countries, the gas market is largely based on long-term bilateral contracts.

Eni accounts for about 40 percent of the country's wholesale gas market, according to energy regulator AEEG.

"Clearly, the presence of an operator which controls one side of the market will be an obstacle to the bourse reaching its goals," said Flavio Battista, in charge of gas trading at energy partnership Sinergie Italiane, which includes some local utilities.

Eni declined to comment on the gas bourse.  Continued...

 

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