Operating review

Gas moved through the storage system

The volumes of gas handled in the storage system in the financial year 2017 amounted to 19.9 billion cubic metres, substantially unchanged compared to 2016 (-0.08 billion cubic metres, equal to -0.4%) despite the greater presence in the system as of 31 March 2017.

The lower injections for replenishing the storage facilities (-0.16 billion cubic metres), attributable to the shippers’ behaviour in relation to various market conditions, were partly offset by higher disbursements (+0.08 billion cubic metres) due to climatic conditions.

Natural gas moved through the storage system (billions of cubic metres)

Since the start of July 2017, commercial management of the 3 businesses concerned with transport, storage and regasification, respectively headed by Snam Rete Gas, Stogit and GNL Italia, have been merged into Snam within a single organisation.

In order to manage exchanges among operators and relationships with them, over time Snam has developed IT systems and web portals that now represent a unique feature of the Company that is upgraded regularly.

Similar to Snam Rete Gas, work tables have been set up to review the information contained in the area dedicated to the site’s business.

Within the network codes are lists of a series of indicators for monitoring the quality of services offered by the companies. Snam companies continued to maintain excellent performance with respect to these indicators in 2017.One part of these indicators, which refers to specific levels of business quality, gives rise to automatic indemnification of customers in the event of a failure to comply with service quality standards.

Organisational changes related to operational activities

During 2017, the number of personnel in service rose by 241, from 301 at 31 December 2016 to 60 at 31 December 2017.The increase was due to implementation of the Integra Project and, in particular, transfer of the “Plants and technical services” business unit from Stogit to Snam Rete Gas, which entailed transferring 221 staff members to the Snam Rete Gas company.

In the Operations area during 2017, the second phase of the SmartGas project was completed, an initiative aimed at revising maintenance standards and regulations to ensure the necessary development of professional roles operating at the hubs, and the development and implementation of more highly developed IT solutions to manage operating processes.

With a view to the enhancement and integrated synergic organisation of Snam’s Italian assets, with effect from 1 July 2017, the sale of the Stogit “Plant and Technical Services” business unit to Snam Rete Gas was finalised. After this reorganisation, the competent Snam Rete Gas operators in the areas of Plant Management, Dispatching & Measurement, Engineering and Construction, and Supply Chain ensure, on the basis of specific service contracts, management of the operation, maintenance and control of storage facilities, storage dispatching operations, engineering activities and the implementation of investment projects related to surface facilities, improvements to plant engineering and procurement of goods and works and services related to the business of storage. Correspondingly within Stogit, the Storage Facilities function was established to manage the related service contracts. In addition, some coordination and specialist activities in the field of health, safety and the environment have been centralised at Snam (e.g.: regulatory system development, support for certification systems) whilst Stogit has set up the unit dedicated to the Prevention and Protection Service.

The integration process will continue during 2018 with specific training initiatives dedicated to dispatching and plant management personnel. In the second half of the year, the project to streamline and simplify the current regulatory framework for Stogit was launched, and the implementation phase for this will be developed during 2018

Accidents

The number of accidents increased in 2017 for employees, whereas they remained unchanged for contract workers.

Energy consumption and emissions

Activities aimed at reducing energy consumption and controlling atmospheric emissions continued.

In 2017, nitrous oxide emissions totalled 175.5 tonnes (-12.7% compared with 2016).

To reduce emissions, a program has been underway for several years to modify some of the existing turbines and to install new units with low-emission combustion systems (DLE). In 2017, 3 turbines were introduced to DLE at storage facilities (TC2 Sabbioncello and TC1 and TC2 at Bordolano).