Eni secures gas price reduction in new deal with GasTerra

|By:, SA News Editor

Eni (E +0.9%) strikes a deal with Dutch firm GasTerra for long-term natural gas supplies at a lower price, as it renegotiates contract terms with various companies amid weaker demand in Europe.

Earlier this year, Eni threatened to take GasTerra, in which Shell (RDS.A, RDS.B) and Exxon (XOM) each own a 25% stake, to arbitration over contracts it said made long-term gas supplies unprofitable.

Eni is in arbitration with Statoil (STO) as it seeks changes to how much it pays for gas, but the outcome isn't expected for many months.