First reports of Gazprom's plans to acquire a share in Amorim Energia appeared last August in an interview with the company's co-owner, Americo Amorim, and in November, Portuguese newspapers wrote that Gazprom was planning to buy 6.6% in the company. Galp Energia, owned by ENI and Amorim Energia, was originally set up as a state-owned holding to manage Portugal's gas transport assets, and it later acquired stakes in several oil firms. A stake in Galp Energia looks a particularly lucrative asset as the company holds a quota for gas supplies through Medgaz, a gas pipeline which is being built to connect Algeria with Spain. The pipeline with a capacity of 8bn cum/yr of gas, will come into operation in 2009, and may later be linked to another pipeline to send gas to Portugal and France. This deal is a unique opportunity for Gazprom to enter the Portuguese gas retail market as well as markets in other Southern European countries. Analysts expect Gazprom to enlarge its shareholding in the company after buying the stake.