The Italian government has formalized a move directing Eni SpA to sell an interest in the national gas transmission network, Snam.

Eni holds a majority interest in Snam.  The government has decreed that Eni must sell at least 25.1 per cent holding  “as quickly as possible” but no later than 18 months.

The balance of the holding will also have to be disposed, though the government did not set a firm timeframe for that.

The purchaser of the stake is the Cassa Depositi e Prestiti, the Italian state financing agency, which the government says will provide stability for long-term development of the gas transmission network.

In addition to the sale being directed by the government, the action is also required to align with the unbundling requirements of EU competition regulations.

Snam has announced that it will invest €6.7 billion in the next three years to improve the country's gas infrastructure and to encourage the growth of the gas market.