Commitments

At 31 December 2016, commitments with suppliers to purchase property, plant and equipment and provide services relating to investments in property, plant and equipment and intangible assets under construction totalled €1,853 million (€1,898 million at 31 December 2015).

Commitments in associates (€776 million) refer to the commitment undertaken by Snam S.p.A. with regard to TAP as the shareholder responsible for financing the project according to the level of the shareholding. The total commitment of Snam S.p.A. at 31 December 2016 undertaken with regard to the estimated cost of the entire project approved by TAP in 2016 stands at around €0.8 billion. At 31 December 2016 Snam paid a total of €0.3 billion, including sums recognised during the conclusion of the transaction to purchase the company, of which €0.1 billion refers to the above commitment. It should, however, be pointed out that in the case of finance agreements finalised for the market cost of the project, guarantees on the loans will be defined, with a consequent reduction of the overall amount of the commitment, as well as the repayment methods for the shareholder loans.

Other commitments refer to future minimum payments relating to operating lease transactions that cannot be cancelled (€3 million expiring in the following year).