Italy and Belgium signed on Monday a Memorandum of Understanding (MoU) to bolster their joint strategic alliance and develop their capabilities in natural gas in Europe, including managing imports and pipeline work between them. Belgium''''s Fluxys S.A. and Italy''''s Snam S.p.A. agreed to assess and evaluate the set-up of a jointly controlled company for the integrated management of the companies'''' international assets across Europe. The MoU signed by the companies further develops the Strategic Alliance of 2012 aimed at pursuing opportunities in Europe through projects enhancing the flexibility and security of supply in the European gas infrastructure, a joint statement by the two companies said. The joint company under consideration would combine Fluxys'''' and Snam''''s international assets located on the South-North and East-West corridors with the exclusion of the Belgian and Italian domestic markets and would play a key role as facilitator of the creation of deeper market flexibility and liquidity through an enhanced interconnection of the European gas networks and markets. By joining forces Snam and Fluxys would become a key player in Europe, interconnecting markets as envisaged in the blueprint set forth in the Third Energy Package, Carlo Malacarne (CEO Snam) and Walter Peeraer (Managing Director Fluxys) said at the signing ceremony. "Combining our European activities would create value for both the market and our shareholders." Snam and Fluxys already work closely together on the South-North Reverse Flow project in Germany, Switzerland and Italy which is to enable gas landing in Italy to flow to Northwest Europe and Britain. The companies also have become co-shareholders in the Interconnector pipeline linking Britain and Belgium