2. International growth

At the European level, Snam promotes the integration of European networks through strategic partnerships with major operators in the sector. In line with the principles of the European Third Energy Package, which promotes the integrated development of infrastructure and the use of common rules for network access in different countries, Snam has increased its focus on the international scene in recent years. Its international strategy, which since 2012 has involved strategic partnerships and M&A operations, has led to the redefinition of Snam’s role within the European infrastructure system. The Company has therefore transformed from its traditional role as an asset operator into a market facilitator, committed to developing the European gas market through the provision of new integrated services to its customers.

In particular, due to its larger size compared with other European players in terms of infrastructure, execution and management capacity (including through partnerships with international operators), and its integrated portfolio of assets in all the regulated segments in the sector (transportation, storage and regasification), including leadership in the distribution segment, Snam is aware of the challenge it faces and the opportunity to position itself as the benchmark operator for the development of the regulated gas market in Europe, and the role within the wider community that this would involve in terms of benefiting from access to new supply directives and integration with other European networks.

In 2012, Snam signed a strategic agreement with Belgian firm Fluxys S.A. (formerly Fluxys G S.A.) for the development of joint gas infrastructure initiatives in Europe, which involved the incorporation of two Dutch-registered companies (Gasbridge 1 B.V. and Gasbridge 2 B.V.) that hold equity investments in European companies operating in the continent’s gas infrastructure. This agreement was followed by the signing of a memorandum of understanding in March 2014 between Snam and Fluxys, with a view to further develop their strategic alliance to pursue growth opportunities through projects aimed at improving the flexibility and security of gas supplies in Europe.

Since 2013, Snam has held an indirect equity investment in Transport et Infrastructures Gaz France (TIGF), France’s second-largest operator in the gas transportation and storage sector, which is strategically located in the country’s south-west⁶.

In 2014, Snam acquired an equity investment of 84.47% in Trans Austria Gasleitung GmbH (TAG) from CDP GAS S.r.l., equivalent to 89.22% of economic rights in the company. TAG owns and manages the Austrian gas pipeline, a key piece of infrastructure for the supply of Russian gas to the Italian market. The TAG pipeline, partly in light of its potential use in reverse flow towards central European markets, is a strategic asset for the development of the East-West European energy corridor, in the context of a policy of ever deeper integration between the continent’s networks.

In 2015, Snam signed a memorandum of understanding with Socar (a producer of oil and natural gas owned by the government of Azerbaijan) for the joint evaluation of initiatives aimed at developing the Southern Corridor as a new and important vessel for the flow of gas to Europe.

Also in 2015, Snam acquired the 20% stake held by Statoil (a Norwegian oil and gas producer) in Trans Adriatic Pipeline AG (TAP), the company responsible for developing the project, running from the Turkish-Greek border to Italy along the Southern Corridor, that will transport the gas produced at the Shah Deniz II deposit in Azerbaijan to European markets – thanks to multi-year ship-or-pay contracts – via the Snam Rete Gas pipeline system. This will consolidate the key role of Italian infrastructure in improving gas supply security and facilitating greater competition between sources, to the benefit of the European gas sector.