9 Inventories

Inventories of €518 million (€519 million at 31 December 2013) are analysed in the table below:

Inventories (current assets)

Inventories of raw materials, consumables and supplies (€125 million, compared with €96 million at 31 December 2013) primarily include: (i) natural gas used for transportation activities (€45 million); and (ii) stock materials relating to the pipeline network (€44 million), the distribution network (€15 million) and storage plants (€10 million).

Inventories of finished products and merchandise (€30 million, compared with €60 million at 31 December 2013) refer to the natural gas present in the storage system (739 million standard cubic metres, unchanged from 31 December 2013) and do not include compulsory inventories, recognised under “Non-current assets” in the balance sheet.

Inventories are reported net of the provision for impairment losses of €36 million (€6 million at 31 December 2013).

Changes in the provision for impairment losses during the year are shown below:

Provisions (€30 million) refer to the impairment of €0.4 billion cubic metres of natural gas used in the storage segment. Owing to the failure of some users to replenish the strategic gas they withdrew in 2010 and 2011 within the timeframes established by the Storage Code, a provision was made equal to the book value of the gas wrongfully withdrawn¹⁴.

Inventories are not collateralised. Inventories do not secure liabilities, nor are they recognised at net realisation value.

Compulsory inventories (non-current assets)

Compulsory inventories (€363 million, unchanged from 31 December 2013) comprise minimum quantities of natural gas that the storage companies are obliged to hold pursuant to Presidential Decree No. 22 of 31 January 2001. The quantities of natural gas in stock, equal to around 4.5 billion standard cubic metres, are determined annually by the Ministry of Economic Development¹⁵.