Eni SpA said the deal, effective June 1, 2008, would mean it was the first European player to enter Russia’s downstream market with gas sales contracts. TGK-9 is controlled by Integrated Energy System (IES) with a stake of more than 75%.

The European Bank of Reconstruction and Development (EBRD) has a minority stake in TGK-9. TGK-9 provides heat and electricity to the Perm region of Russia. Eni said the deal was “a fundamental step towards the development of Eni’s presence in the Russian market,” where it targets gas sales of 900 million cubic meters. Russia is one of the world’s biggest consumers — and producers — of gas.

Eni has a strategic agreement with Russian gas company Gazprom on joint projects in sectors including the downstream gas business. Eni shares were down 1.71% at 0821 GMT, outperforming a 2.7% fall in the DJ Stoxx index of European oil and gas companies. (Reuters)