Italy’s economics ministry finalized the award to Canoel International Energy Ltd., Calgary, of the Torrente Vulgano and Canaldente gas field licenses formerly produced by Eni.
Torrente Vulgano is in the Puglia region and Canaldente is in the Basilicata region, both in southern Italy. Both are connected to the national gas distribution grid.
Torrente Vulgano averaged 279,000 scfd in 1997-2,000, and Canoel expects to resume production in 9 months at an undetermined rate. Canaldente, also to be placed on production, appears to be a good candidate for gas storage upon depletion.
Gas prices in Italy are roughly three times those in North America, Canoel pointed out.