MILAN: French gas and power group GDF Suez sees natural gas prices picking up next year and is ready to invest in nuclear power in Italy if the opportunity arises, its chief was quoted saying by a newspaper on Sunday.
In an interview in daily la Repubblica, GDF Suez Chairman and Chief Executive Gerard Mestrallet said negative factors affecting the gas price were depressed industrial demand and the impact of the oil price on long-term contracts.
"The discovery of shale gas deposits in the United States, thanks to which it is becoming independent from foreign (imports), has provoked a fall on the spot market," Mestrallet said in the Italian newspaper.
"But demand for gas is growing, above all in Asia, for which I believe, with the start of next year, that there will be a pick up in prices," he said.
For integrated operators with a long-term strategic vision, take-or-pay contracts for gas will remain fundamental, he said.
On Thursday, GDF said it plans to double Italian customers to 2 million by 2015. In 2010 it had revenue of 5.7 billion euros ($8.2 billion).
On starting nuclear power production in Italy, Mestrallet said GDF will have to wait and see what government policy will be after European stress tests on nuclear plants.
"We have an agreement with (Germany's) E.ON to develop a project in Italy if the occasion presents itself. At the moment we confirm this," he said.
Italy hopes to revive plans to relaunch nuclear power in one or two years. The government shelved plans for construction of new plants in April.
Copyright Reuters, 2011
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