9. Inventories

Inventories, which amount to €481 million (€515 million at 31 December 2015) are analysed in the table below:

Inventories (current assets)

Inventories of raw materials, consumables and supplies (€100 million, compared with €134 million at 31 December 2015) primarily include: (i) natural gas used for transportation activities (€42 million); and (ii) stock materials relating to the pipeline network (€42 million) and storage plants (€10 million).

Inventories of finished products and merchandise (€18 million, the same as at 31 December 2015) refer to the natural gas present in the storage system (619 million standard cubic metres, unchanged from 31 December 2015) 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 €42 million (€39 million at 31 December 2015). The provision essentially involves the impairment (€30 million) made in 2014 for 0.4 billion cubic metres of natural gas used under the scope of storage activities of strategic gas unduly withdrawn by some service users in 2010 and 2011¹⁵.

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

Provisions (€3 million) related to spare parts involving to the transportation segment.

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 2015) comprise minimum quantities of natural gas that the storage companies are obliged to hold pursuant to Presidential Decree 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 Development¹⁶.