Chief Executive Umberto Quadrino of leading Italian energy company Edison SpA (EDN.MI) said Turkey is demanding a large chunk of the natural gas Azerbaijan is offering, but he remains confident a deal can be worked out.
Turkey wants 8 billion cubic meters annually out of the 12 billion Azerbaijan is negotiating, said the CEO on a conference call to comment its new 2009-2014 investment plan.
The CEO added that Turkey's gas demand would make a pipeline, known as ITGI - that will supply Caspian gas to Italy via Turkey and Greece - unprofitable. The ITGI pipeline is being developed by Edison, Greece's monopoly gas provider Depa and Turkey's Botas.
The CEO said he met the Azeri President in Rome last week and said the meeting went well. Quadrino sees a 50% chance of success of Azerbaijan agreeing to supply ITGI with the gas from the Central Asian country.
There is strong competition for the Azeri gas, including from Russia, added Quadrino.