Technical investments

Technical investments in 2018 amounted to 764 million euro, a decrease of 153 million euro, or 16.7%, compared with 2017 (917 million euro).

Investments have been classified consistently respectively with resolutions 575/2017/R/gas with reference to FY 2018 and 514/2013/R/gas for 2017 investments where by the Autorità di Regolazione per Energia, Reti e Ambiente (“ARERA” or the “Authority”) identified different categories of projects with which a different level of remuneration is associated.

The main investments made in developing new transmission capacity, for which a greater remuneration of 1% is envisaged (279 million euro), mainly concern:

• investments in developing new transmission capacity on the national network functional to import and export capacity (174 million euro) as part of the initiative to support the market in the country’s north-west, and to allow for the reversal of physical transmission flows at the interconnection points with northern Europe in the area of the Po Valley, projects to upgrade the transmission network from the entry points in southern Italy, the Cervignano-Mortara methane pipeline and the compression plants of Sergnano and Minerbio, which were commissioned starting October 2018;
• investments in developing new transmission capacity on the regional and national networks (106 million euro), including: (i) the continuation of works relating to the Cornegliano Laudense Italgas Storage S.r.l. connection; (ii) the continuation of construction works and connections relating to the methanisation of the region of Calabria, including the Montebello Jonico derivation.

Investments in replacement and other investments with basic remuneration¹¹ (485 million euro) mainly concern: (i) works aimed at maintaining plant safety levels, also in terms of function and quality (366 million euro) including the continuation of works for the design and acquisition of permits and start to delivery of materials for the rebuilding of the Ravenna-Chieti methane pipeline, stretch Ravenna-Recanati (27 million euro); (ii) projects relating to the development of new information systems, as well as the implementation of the existing ones (65 million euro); (iii) upgrading projects for the redelivery plants (24 million euro); (iv) reclamation works for third parties (10 million euro); and (v) the purchase of assets instrumental to operating activities (18 million euro).

Progress of work to obtain permits

For the development of new sites, in addition to the technical-economic feasibility criteria, Snam adopts procedures that meet strict environmental compatibility and safety assessments.

The assessments of the environmental effects involve all the phases of the work life cycle, site selection, planning, construction, operation and decommissioning. These assessments are made within the purview of the Environmental Impact Assessment (EIA) procedures, and in the Integrated Environmental Authorisation (IAEA) procedures, at the end of which the central and local administrations issue the permits required under current law.