Italy Energy Watchdog Extends Gas Supply to Ilva

Italy's energy watchdog has extended to Jan. 31 an emergency gas supply scheme that had been due to end on Monday which allows troubled steel producer Ilva to keep its doors open.

 

Oil major Eni said earlier this month the agreement under which it supplied gas to Ilva would end in December. Under the scheme it can make up potential losses on sales to Ilva through energy bills to other clients.

 

After Jan. 31, Eni can continue to supply gas to Ilva until the end of September, but it must find appropriate guarantees or bear the risk of not being paid, the energy authority said in a statement.

 

Eni had no comment.

 

Privately-owned Ilva, Europe's biggest steel plant by output capacity, was placed under special administration last year after being accused of failing to contain toxic emissions.

 

To stave off a shutdown the government last week approved emergency measures. The plant will be rented out to a state-owned vehicle that will invest in its maintenance, the industry ministry said in a statement on Monday.

 

The process is set to last two to three years, it said.

 

A spokeswoman for FIOM trade union leader Maurizio Landini told Reuters on Monday that the government would then look into a sale or a possible stock market listing.

 

ArcelorMittal, the world's biggest steelmaker, has submitted a non-binding offer with Italian steel processor Marcegaglia for Ilva.