Snam To Develop CNG Stations for Eni

Eni and Italian gas network operator Snam have signed their first contract implementing a May 2017 framework agreement to develop compressed natural gas (CNG) filling stations in Italy.

The 20-year contract lays out the plan for the construction and maintenance of a first batch of 14 new CNG units by Snam at Eni's national network of service stations, in exchange for which Snam will receive between €20mn and €40mn from Eni for its services. 

It is part of Snam's plans to develop, with partners, gas-based transport infrastructure – including the rollout of up to 300 new CNG and L-CNG (liquefied CNG) service stations at an overall cost of €150mn. 

Eni seeks to further strengthen its offer for sustainable mobility through this initiative. About a thousand of Eni's stations currently supply liquid petroleum gas (LPG) and methane (including 180 CNG and two LNG) while the other 3,500 deliver Eni Diesel+, its premium diesel with 15% renewable content produced at its Porto Marghera, Venice biorefinery

Italian motor fuel retailer API, one of Eni's rivals, signed a letter of intent with Snam in December 2016 saying it aimed to developing up to 150 new filling stations to supply CNG within the API network.