Italy's Snam RG H1 net up 16.7 pct

MILAN, July 29 (Reuters) - Italian natural gas network operator Snam Rete Gas SpA (SRG) (SRG.MI) posted first-half net profit of 259 million euros ($407.5 million) on Tuesday, up 16.7 percent from the year before.

The amount of gas shipped rose 8.3 percent to 45.4 billion cubic metres, it said in a statement.

SRG also expects domestic gas demand to rise more than 2 percent a year on average in the four-year period from 2008 to 2011.

The board approved an interim dividend of 0.09 euro a share, up from 0.08 euro last year.

Italian oil and gas company Eni SpA (ENI.MI) owns 50 percent of SRG. (Reporting by Ian Simpson)