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13 Property, plant and equipment

Property, plant and equipment of €14,851 million (€14,522 million at 31 December 2012) comprises:

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31.12.2012

(€ million)

Net opening value

Invest­ments

Amor­tisation, depre­ciation and impair­ment losses

Disposals

Other changes

Net closing value

Gross closing value

Provision for depre­ciation and impair­ment losses (*)

(*)

Including impairment losses of €11 million.

Land

150

2

 

 

1

153

153

 

Buildings

400

2

(15)

(2)

18

403

612

209

Plant and equipment

11,486

2

(478)

(12)

1,225

12,223

17,702

5,479

Industrial and commercial equipment

66

17

(17)

(2)

 

64

226

162

Other assets

19

1

(6)

 

15

29

96

67

Non-current assets under construction and payments on account

1,932

888

 

(3)

(1,167)

1,650

1,650

 

 

14,053

912

(516)

(19)

92

14,522

20,439

5,917

  Download XLS (23 kB)

 

31.12.2013

(€ million)

Net opening value

Invest­ments

Amor­tisation, depre­ciation and impair­ment losses

Disposals

Other changes

Net closing value

Gross closing value

Provision for depre­ciation and impair­ment losses (*)

(*)

Including impairment losses of €21 million.

Land

153

4

 

 

3

160

160

 

Buildings

403

3

(12)

 

39

433

655

222

Plant and equipment

12,223

 

(496)

(5)

559

12,281

18,234

5,953

Industrial and commercial equipment

64

11

(21)

(1)

1

54

226

172

Other assets

29

1

(9)

 

13

34

109

75

Non-current assets under construction and payments on account

1,650

877

 

(3)

(635)

1,889

1,889

 

 

14,522

896

(538)

(9)

(20)

14,851

21,273

6,422

Property, plant and equipment (€14,851 million) relates mainly to natural gas transportation (€12,133 million), storage (€2,420 million), distribution (€208 million) and regasification (€87 million) infrastructure.

Investments15 (€896 million) relate to the transportation (€637 million), storage (€244 million), distribution (€10 million) and regasification (€5 million) segments.

The financial expenses capitalised during the year amounted to €34 million (€38 million in 2012).

Depreciation and impairment losses (€538 million) refers to economic and technical depreciation determined on the basis of the useful life of the assets or their remaining possible use by the Company.

The main annual depreciation rates adopted are included in the following ranges:

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Annual depreciation rate (%)

Buildings

 

- Buildings

2-2.5 or greater, depending on residual life

Plant and equipment - Transportation

 

- Pipelines

2 or greater, depending on residual life

- Stations

5 or greater, depending on residual life

- Gas reduction/regulation plants

5 or greater, depending on residual life

Plant and equipment - Storage

 

- Pipes

2-2.5

- Treatment stations

4 or greater, depending on residual life

- Compression stations

5 or greater, depending on residual life

- Storage wells

1.66

Plant and equipment - Regasification

 

- LNG plants

4 or greater, depending on residual life

Other plant and equipment

2.5-12.5

Metering equipment

5 or greater, depending on residual life

Industrial and commercial equipment

10-35

Other assets

10-33

Disposals (€9 million) relate exclusively to sections of methane pipelines and some components of compression stations.

Other changes (-€20 million) relate essentially to: (i) the change in surplus pipes purchased for investment purposes and not yet used in production at the plants in relation to the natural gas transportation segment (-€33 million); (ii) grants for the period (-€25 million); and (iii) the change in the estimated (discounted) costs of site restoration and dismantling (+€36 million) in relation to the natural gas transportation and storage segments, which are offset by the recognition of a specific provision16.

Government grants for capital expenditure and grants from other parties reducing the net value of property, plant and equipment amount respectively to €75 million (€76 million at 31 December 2012) and €257 million (€240 million at 31 December 2012). As at 31 December 2013, there are no uncollected government grants.

The value of plant and equipment includes site dismantling and restoration costs totalling €172 million, relating mainly to natural gas storage (€98 million) and transportation (€71 million) sites.

Summarised below are the changes occurring in provisions for depreciation and impairment losses over the year:

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(€ million)

31.12.2012

Increases

Sales and eliminations

31.12.2013

Buildings

209

12

1

222

Plant and equipment

5,479

496

(22)

5,953

Industrial and commercial equipment

162

21

(11)

172

Other assets

67

9

(1)

75

 

5,917

538

(33)

6,422

Contractual commitments for the purchase of property, plant and equipment, and for the provision of goods and services related to their construction, are disclosed in Note 30 “Guarantees, commitments and risks”.

Property, plant and equipment by business segment

Property, plant and equipment are broken down by business segment as follows:

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(€ million)

31.12.2012

31.12.2013

Gross property, plant and equipment

 

 

Business segments

 

 

- Transportation

16,829

17,447

- Regasification

132

136

- Storage

2,982

3,187

- Distribution

483

490

- Corporate

13

13

Total

20,439

21,273

Provision for depreciation and impairment losses

 

 

- Transportation

(4,876)

(5,314)

- Regasification

(43)

(49)

- Storage

(717)

(767)

- Distribution

(271)

(282)

- Corporate

(10)

(10)

Total

(5,917)

(6,422)

Net property, plant and equipment

 

 

- Transportation

11,953

12,133

- Regasification

89

87

- Storage

2,265

2,420

- Distribution

212

208

- Corporate

3

3

 

14,522

14,851

15 The investments for the financial year made by each business segment are described in the “Business segment operating performance” section of the Directors’ Report.

16 Further information can be found in Note 25, “Provisions for risks and charges”.

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