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 |
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(€ 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 (*) |
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|
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|
Land |
150 |
2 |
|
|
1 |
153 |
153 |
|
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Buildings |
400 |
2 |
(15) |
(2) |
18 |
403 |
612 |
209 |
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|
Plant and equipment |
11,486 |
2 |
(478) |
(12) |
1,225 |
12,223 |
17,702 |
5,479 |
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|
Industrial and commercial equipment |
66 |
17 |
(17) |
(2) |
|
64 |
226 |
162 |
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Other assets |
19 |
1 |
(6) |
|
15 |
29 |
96 |
67 |
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Non-current assets under construction and payments on account |
1,932 |
888 |
|
(3) |
(1,167) |
1,650 |
1,650 |
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|
|
14,053 |
912 |
(516) |
(19) |
92 |
14,522 |
20,439 |
5,917 |
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31.12.2013 |
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|
(€ 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 (*) |
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Land |
153 |
4 |
|
|
3 |
160 |
160 |
|
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Buildings |
403 |
3 |
(12) |
|
39 |
433 |
655 |
222 |
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Plant and equipment |
12,223 |
|
(496) |
(5) |
559 |
12,281 |
18,234 |
5,953 |
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|
Industrial and commercial equipment |
64 |
11 |
(21) |
(1) |
1 |
54 |
226 |
172 |
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Other assets |
29 |
1 |
(9) |
|
13 |
34 |
109 |
75 |
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Non-current assets under construction and payments on account |
1,650 |
877 |
|
(3) |
(635) |
1,889 |
1,889 |
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|
14,522 |
896 |
(538) |
(9) |
(20) |
14,851 |
21,273 |
6,422 |
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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 |
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Plant and equipment - Transportation |
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- Pipelines |
2 or greater, depending on residual life |
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- Stations |
5 or greater, depending on residual life |
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- Gas reduction/regulation plants |
5 or greater, depending on residual life |
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Plant and equipment - Storage |
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- Pipes |
2-2.5 |
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- Treatment stations |
4 or greater, depending on residual life |
|
- Compression stations |
5 or greater, depending on residual life |
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- Storage wells |
1.66 |
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Plant and equipment - Regasification |
|
|
- LNG plants |
4 or greater, depending on residual life |
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Other plant and equipment |
2.5-12.5 |
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Metering equipment |
5 or greater, depending on residual life |
|
Industrial and commercial equipment |
10-35 |
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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 |
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- Regasification |
132 |
136 |
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- Storage |
2,982 |
3,187 |
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- 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) |
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Total |
(5,917) |
(6,422) |
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Net property, plant and equipment |
|
|
|
- Transportation |
11,953 |
12,133 |
|
- Regasification |
89 |
87 |
|
- Storage |
2,265 |
2,420 |
|
- Distribution |
212 |
208 |
|
- Corporate |
3 |
3 |
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|
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”.