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    Snam Profits Dip, Plans €5bn Capex

Summary

Italian gas grid Snam has said it will invest some €5bn during 2017-2021, most in Italy. It also reported a decline in profits.

by: Mark Smedley

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Natural Gas & LNG News, Europe, Security of Supply, TSO, Gas for Transport, Infrastructure, Liquefied Natural Gas (LNG), News By Country, Austria, Italy

Snam Profits Dip, Plans €5bn Capex

Italian gas grid Snam said March 7 it will invest some €5bn during 2017-2021. Of that €4.7bn will be in Italy, including to extend its grid length by 1%.

Snam also reported that its 2016 statutory profits were 31% lower at €861mn; that included the contribution of discontinued operations following the separation of Italgas from Snam, effective November 7 2016. Excluding that contribution, profit was €761mn.

Italgas, which runs gas distribution in several big Italian cities, is now 26.05%-owned by firms controlled by state fund Cassa Depositi e Prestiti (CDP) while 13.5% is retained by Snam, itself part owned by CDP and China's State Grid Europe. Institutions and small investors hold most of the balance.

Photo credit: Italgas

Gas injected into its network increased by 5% to 70.63bn m3 in 2016, while storage capacity increased by 0.5bn m3 versus a year ago to 12bn m3 at end-2016. Snam’s sole LNG terminal at Panigaglia unloaded five tankers and regasified 0.21bn m3 last year, from just one and 0.03bn m3 in 2015.

Last year Snam and Allianz acquired a 49% interest of Gas Connect Austria (GCA), for a total outlay by Snam of €135mn. Snam also signed agreements to promote gas as an automotive fuel (CNG).

 

Mark Smedley