* GasTerra contract change includes new indexation mechanism
* Positive impact on 2013 results
* Eni in arbitration with Statoil over Norway contracts
(Recasts lead, adds source, detail, background)
By Stephen Jewkes
MILAN, Dec 18 Eni has clinched a deal
with GasTerra over long-term Dutch gas supply contracts that
will give the Italian oil and gas group a major price cut and
boost its results.
Eni said it had obtained a significant price reduction as
well as a change in the price indexation mechanism which will
include a link to cheaper spot gas prices.
The renegotiation of long-term contracts with suppliers is
widespread in Europe's gas industry as low spot prices on the
wholesale market, depressed by flagging economies, make many
existing agreements unprofitable.
Eni's bottom line in the past few years has been hit by its
gas business as sales in Europe falter due to the economic
crisis and long-term gas prices stay above spot rates.
"This agreement marks an important milestone in Eni's effort
to align all long-term gas supply contracts to the new market
conditions," Eni said.
The renegotiation of contracts with GasTerra will have a
positive impact on 2013 results. A source familiar with the
matter said the impact would be in the order of "several
hundreds of millions of euros."
Eni declined to comment on the exact amount.
Earlier this year, Eni renegotiated its contracts with
Gazprom to secure a price cut and also with Algeria's
Sonatrach, enabling it to import less gas.
In August, it started arbitration proceedings against
Norway's Statoil. Eni CEO Paolo Scaroni, who has
previously described the Statoil gas supplies as the most
expensive in its portfolio, said in November reports Eni might
demand as much as $10 billion from the Norwegian company were
(Reporting by Stephen Jewkes. Editing by Jane Merriman)