Liquefied natural gas (LNG) regasification

Results

Total revenue amounted to €10 million, down by €3 million (23.1%) compared with the first half of 2015. Total revenue, net of components offset in costs⁹, fell by €2 million, or 16.7%, compared with the corresponding period of the previous year. The reduction is basically connected with less capacity bookings for the thermal year 2015-2016 compared with the previous thermal year.

Revenues from regulated activities equal to €10 million, net of components that are offset in costs, fell by €1 million compared with the first half of 2015 and refer almost entirely to the portion pertaining to the guarantee factor for 2016.

Non-regulated revenues fell by €1 million compared with the first half of 2015, basically following lower income from sales of natural gas for boil-off purposes.

EBIT amounted to €1 million, down by €2 million, or 66.7%, compared with the first half of 2015. The reduction was due to lower revenues (-€2 million, net of items offset in costs) and higher amortisation and depreciation in the period (-€1 million). These factors were partly offset by lower operating costs (+€1 million, net of items that are offset in revenue).

Technical investments

Technical investments in the first half-year totalled €2 million (€1 million in the first half of 2015) and involved maintenance projects aimed at guaranteeing plant system safety.

Operating review

During the first half of 2016, the Panigaglia (SP) LNG terminal regasified 0.092 billion cubic metres of natural gas, an increase of 0.072 billion cubic metres compared with the first half of 2015 (0.020 billion cubic metres) of which 0.049 billion cubic metres were regasified as part of the integrated regasification and storage service. In the first half of 2016 two spot loads were unloaded from methane tankers, one as part of the above-mentioned integrated service.

Regulation

Ministerial Decree of 25 February 2016 (Official Gazette of 1 April 2016) - Integrated storage and regasification service access and delivery procedures

Through the Decree of 25 February 2016 “Determination and allocation of modulation storage capacity for the contractual period 2016-2017” published in the Official Gazette 76 of 1 April 2016, the Ministry for Economic Development also changed the integrated storage and regasification service access and delivery methods, previously introduced pursuant to Article 14 of Law Decree 1/2012. In particular, this service, for which a storage capacity of 1 billion cubic metres is reserved, requires the regasification companies and the largest storage company to coordinate in order to allow redelivery of the regasified LNG to the user directly to storage, by the end of the month following the unloading of the tanker ships. Based on the provisions of the Decree, access to the service is obtained through a competitive auction whose price has been defined by the Authority on the basis of the criteria set forth in 77/2016/R/gas, taking account of the value of the product and the trend of the market.

Electricity, Gas and Water System Authority (AEEGSI) resolutions

Resolution 191/2016/R/gas - “Integration of the application methods for the factor for covering revenue for the LNG regasification service following the introduction of the integrated regasification and storage service”

Through this resolution, published on 21 April 2016, the Authority introduced an amendment to the application methods for the factor for covering revenue for the LNG regasification service in order to include the changes introduced through resolution 77/2016/R/gas with regard to offering an integrated regasification and storage service pursuant to Article 1 of the Decree of 25 February 2016 “Determination and allocation of modulation storage capacity for the contractual period 2016-2017” of the Ministry of Economic Development. This amendment also introduces revenues from the integrated regasification and storage service into the formula for the factor for covering revenue.

Decision 13/2016 of 27 May 2016 - DIUC - “Authorisation for the entitlement of rights relating to the cover factor of revenues pertaining to GNL Italia S.p.A. for the year 2015”

Through this decision, published on 30 May 2016, the Authority notified the Cassa per i Servizi Energetici e Ambientali of the authorisation for the entitlement of rights relating to the cover factor of revenues with regard to GNL Italia S.p.A. for the year 2015, following the conformity check on the calculation methods consistent with the criteria of resolution 438/2013/R/gas “Regulation of tariffs for the liquefied natural gas regasification service for the regulation period 2014-2017 (RTRG)”.

Resolution 392/2016/R/gas – “Determination of the tariffs for the LNG regasification service for 2017”

With this resolution, published on 14 July 2016, the Authority approved tariffs for the regasification service provided by GNL Italia for 2017.

The tariffs were set on the basis of the base revenue of €27.9 million. Effective revenue must take account of capacity actually allocated. The net capital invested as at 31 December 2015 (RAB) was around €0.1 billion.

The Authority also paid GNL Italia a sum of approximately €0.34 million to cover the increase in the IMU rate for the years 2013 and 2014.