June 27 (SeeNews) - Italian energy company Eni said it has signed a memorandum of understanding with Croatian oil and gas company INA [ZSE:INA] to jointly evaluate the opportunity to realize a gas interconnection between the two countries.
The initiative aims to leverage existing infrastructure, used until now for offshore gas production activities in the upper Adriatic Sea, to additionally perform gas transport functions between Italy and Croatia, Eni said in a statement on Tuesday.
The interconnection will increase the degree of integration, security of supply, competitiveness and sustainability of the Croatian market, as well as of the Italian market, as the infrastructure will be able to operate reverse flows.
Furthermore, Eni said, the development of this initiative will contribute to consolidating Italy's position as a gas hub in Europe.
Earlier this month, INA said was is acquiring Eni Croatia BV, a wholly-owned member of the Eni Group, and becoming the 100% owner and the sole operator of the Northern Adriatic and Marica offshore gas fields.
The Eni Group, through Eni Croatia BV, participated in the joint project for gas production in Croatia’s offshore areas Northern Adriatic and Marica.
Following the transaction, INA noted at the time, all gas produced in the Northern Adriatic concession area will be directed towards the Croatian supply system.