Snam and the new brand identity

In March 2018, Snam re-launched its brand identity, renewing the logo and values that will accompany the group in its future challenges, from the development of infrastructures to guarantee stable, secure energy supplies, through to the development of gas as a renewable source.

“Energy to inspire the world” is the message around which Snam’s strategic repositioning is hinged, in an increasingly global market that is characterised by changes and innovations that are transforming energy and environmental scenarios.

In 2018, growth in the core business of regulated activities continued, also involving the December acquisition, through a European consortium, of DESFA, the Greek national natural gas infrastructures operator. With reference to the energy transition, Snam has completed investments in the development of new businesses aimed at fostering decarbonisation and a better use of energy, in particular in the biomethane segment (IES Biogas and Enersi Sicilia), sustainable mobility (Cubogas) and energy efficiency (TEP Energy Solution).

We have stipulated important agreements for the development of sustainable mobility, including through the possible development, as part of a partnership, of certain micro--liquefaction plants and agreements in China for the supply of services and evaluation of possible collaborations, in biomethane, in the research and development of renewable gas, in sustainable mobility and in storage. More specifically, as at 31 December 2018, a total of 50 CNG/L-CNG, biomethane and bio LNG refuelling stations had been contracted, of which 34 with Eni.

With the aim of globally optimising the consolidated experience of Snam, under the scope of the activities carried out by the Snam Global Solution business unit, we have established a joint venture with the Albanian infrastructure operator Albgaz, aimed at supplying services connected with the operation and maintenance (O&M) of gas pipelines in Albania.

During the year, moreover, the non-recourse financing of TAP was completed, the largest project finance operation for a European greenfield infrastructural project in 2018. Named “Project Finance deal of the year” for the Oil & Gas sector by Project Finance International (PFI), the project refers to a total amount financed of 3.9 billion euro, in which Snam played a role in supporting and coordinating the project, together with the other sponsors, and which involved institutional lenders like the EIB (which individually financed the project with 700 million euro), BERS and various export credit agencies, such as SACE, BPI France and Euler Hermes, as well as 17 international commercial banks.

In 2017 Snam celebrated its first 75 years of activity, proving that the ability to put its commitment and skills to the service of the community and to keep a constant dialogue with the territories are and will be the key to its success. With the acquisition from Edison of 100% of the share capital of Infrastrutture Trasporto Gas and a 7.3% share in Adriatic LNG, Snam has notably further strengthened its infrastructures in Italy and managed to build further synergies in the integrated management of the entire gas system, connecting to the national transport network a strategic entry point for the Italian natural gas market.

Concerning the commitment to sustainable development, in December 2017 Snam entered into the first executive contract for the development of methane supply stations in Italy starting the activities of Snam 4 Mobility S.p.A. (wholly owned by Snam).

In 2016, Snam completed the separation of its distribution business, acquired a new organisation and continued its path toward development

As at 7 November 2016, a corporate transaction was successfully completed that resulted in the separation of Snam from the national gas distribution business in Italy, whereby the Snam Group sought to strengthen and enhance its leadership in Europe in its core business: natural gas transportation, storage and regasification. Also in connection with the aforementioned transaction, in October Snam defined a new organisational structure, designed to be an instrument that enables focused management and control of the strategic guidelines of the plan and more efficient and effective operational management, including through the simplification of decision-making processes. Pursuant to the strategy of strengthening and enhancing leadership on the European gas market, on 16 December 2016 Snam, in a joint venture with Allianz, completed the acquisition from OMV of 49% of Gas Connect Austria GmbH (GCA), with an indirect equity investment of 19.6% in the company share capital for Snam.

Snam separates from Eni and expands its scope of activity to cover Europe

On 1 January 2012, the Company changed its name from Snam Rete Gas to Snam and transferred the gas transportation business to a new company, which inherited the respected Snam Rete Gas name. The ownership unbundling from Eni was completed on 15 October 2012 through the sale of approximately 30% of Snam’s capital to CDP Reti S.r.l., and Snam began its path toward growth in Europe. Having acquired 31.5% of Interconnector UK in 2012 as part of a joint venture with Fluxys, Snam (45%; 40.5% as at 31 December 2018 following the entry of Credit Agricole Assurances (CAA) in the corporate structure of TIGF Holding), alongside the Singapore sovereign wealth fund GIC (35%) and EDF (20%), successfully completed the acquisition of TIGF (renamed Terēga) from Total in July 2013, active in gas transportation and storage in south-west France, with a gas transportation network over 5,000 km and two storage fields. On 19 December 2014, the Company acquired from CDP Gas S.r.l. 84.47% (equivalent to 89.22% of the economic rights) of Trans Austria Gasleitung GmbH (TAG), the company that owns the Austrian section of the gas pipeline linking Russia and Italy. The objective of those transactions was to increase and enhance Snam’s industrial capacity in the integrated management of natural gas transportation and storage infrastructure. Snam’s international development continued with the acquisition of a 20% stake in Trans Adriatic Pipeline AG (TAP), the company responsible for developing the pipeline that will run from the Turkey-Greece border to Italy along the Southern corridor, enabling gas produced in Azerbaijan to reach European markets. Our investment in the project will consolidate the primary position of Snam and Italian infrastructure in improving competition between energy sources and securing gas supplies for Europe.

The integration of all regulated gas activities

In 2009, the Company acquired 100% of Stogit, Italy’s largest natural gas storage field operator, and 100% of Italgas, the country’s biggest gas distributor. This added the other two regulated gas activities in Italy to Snam’s offering: storage and distribution. The June 2009 transaction turned Snam into a key integrated regulated gas activities operator, and the largest by regulatory asset base (RAB) in mainland Europe

Methanisation in Italy and expansion of the gas infrastructure, up to listing on Borsa Italiana

Snam (Società Nazionale Metanodotti) has provided integrated natural gas supply, transportation and sale services in Italy since 1941. It gradually put together an intricate system of methane pipelines, covering the whole of Italy, and built important pipelines that today allow the country to import from different areas: from Russia, the Netherlands, Algeria, the North Sea, and Libya. In 1971, Snam designed and built Italy’s first liquefied natural gas (LNG) regasification plant at Panigaglia, in the Gulf of La Spezia. Snam Rete Gas was incorporated on 15 November 2000 to house all Snam’s Italian transportation, dispatching and LNG regasification activities. The unbundling of these activities was decided pursuant to the Letta Decree (164/2000), which transposed the European Directive on the liberalisation of the European gas market. On 6 December 2001, after the Electricity and Gas Authority (today the Energy Grid and Environment Regulation Authority - ARERA) issued a resolution establishing the criteria for defining transportation tariffs, Snam Rete Gas was listed on the stock exchange.