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EGL targets 40% to 50% stake in Adriatic gas pipeline

Elektrizitaets-Gesellschaft Laufenburg AG, Switzerland's third-largest power company, plans to keep 40 to 50% of the equity in a natural-gas pipeline it intends to build to Italy from Greece.

Elektrizitaets-Gesellschaft Laufenburg AG is in „serious and advanced talks,” with two companies that might become partners in the venture and at an early stage with a third, Lilly Frei, a spokeswoman at the company's head office in Laufenburg, Switzerland, said today. EGL's equity investment will be €100 million to €150 million ($132 million to $198 million), according to the plans.

EGL wants to build the pipeline, slated for construction next year, to supply plants in Italy with gas from the Caspian Sea region, Russia and the Middle East. It will be completed in 2010, according to EGL's schedule. An environmental-impact study has been completed and EGL is in the process of submitting it to the relevant authorities in Greece, Albania and Italy, Frei said. The pipeline will ship as much as 10 billion cubic meters of gas a year from Greece via Albania to Italy. Construction is set to start in 2008, with completion in 2010, EGL said. (Bloomberg)