Nov. 26 (Bloomberg) -- Royal Dutch Shell Plc, Europe’s biggest oil company, intends to build a natural gas import terminal with refiner ERG SpA, even though the project is delayed because it lacks final regulatory approval.

“We’re still pursuing it,” Kathleen Eisbrenner, head of Shell’s global liquefied natural gas business, told reporters today at a gas conference in Como, Italy.

Environment Minister Stefania Prestigiacomo hasn’t announced whether construction of the plant in Sicily can start. Earlier this year the project was approved by a committee in the ministry.

Italian companies are building gas-import terminals and pipelines as they seek to reduce dependence on Eni SpA, the country’s largest oil company, which owns most of the country’s import infrastructure and the only LNG terminal.

Shell and ERG will each own half of the terminal, which will have an initial processing capacity of 8 billion cubic meters of gas a year. Construction was scheduled to start in 2007, with the plant starting operations three years later.

ERG Chief Executive Officer Alessandro Garrone said in a May interview that he wasn’t sure if Shell was still interested in building the terminal following the delay in getting approval.

To contact the reporter on this story: Adam L. Freeman in Rome at afreeman5@bloomberg.net

Last Updated: November 26, 2008 06:30 EST