Technical investments

Technical investments in 2017 amounted to Euro 917 million, an increase of Euro 141 million, or 18.2%, compared with 2016 (Euro 776 million).

Investments were classified in accordance with Resolution 514/2013/R/gas of the Electricity, Gas and Water Authority, which identified various categories of projects with different rates of return.

The main investments for the development of new transportation capacity on the National Network to bolster import and export capacity, for which a higher return of 2.0% (Euro 276 million) is projected, concern the following:

• as part of the initiative to support the market in the north-west of the country, and to make it possible to reverse the physical transportation flows at the interconnection points with northern Europe in the Pianura Padana area (Euro 249 million):(i) the continuation of activities related to the supply of turbochargers relating to the new plants at Sergnano and Minerbio; (ii) the continuation of the construction of the Cervignano-Mortara pipeline.
• as part of the projects to upgrade the transportation network from the entry points in southern Italy (Euro 20 million):(i) completion of the main construction works on the Biccari-Campochiaro pipeline; and (ii) continuation of construction works on the Massafra-Biccari pipeline connection points.

The main development investments have an envisaged greater return of 1.0% (Euro 107 million) relate to a number of works to upgrade the network and to connect to new regional and national redelivery points, including:(i) the continuation of the construction of pipelines and connections connected to the methanisation initiative of the Calabria Region (Euro 40 million) including the bypass for Montebello J. and the delivery of materials for the Sant’ Andrea Apostolo dello Jonio-Caulonia methane pipeline; (ii) the continuation of the complementary construction works related to the upgrading of the Gavi-Pietralavezzara methane pipeline in Piedmont-Liguria (Euro 10 million); (iii) the start of the delivery of materials related to the Italgas Storage s.r.l. connection in Cornegliano Laudense (Euro 10 million); (iv) the continuation of construction works related to the upgrading of Varese bypass (Euro 7 million); (v) the continuation of the complementary construction works of the Lainate – Olgiate Olona methane pipeline relating to the upgrading of the Lombardy network (Euro 4 million).

Investments with basic remuneration¹⁸ (Euro 534 million), concerning:(i) works aimed at maintaining the safety and quality levels of the plants (Euro 432 million) including the continuation of construction works for the rebuilding of the Pontremoli – Cortemaggiore methane pipeline (Euro 29 million); (ii) projects relating to the development of new information systems, as well as the implementation of the existing ones (Euro 42 million); (iii) upgrading projects for the redelivery plants (Euro 34 million); (iv) reclamation works for third parties (Euro 10 million); and (v) the purchase of assets instrumental to operating activities (Euro 16 million).

Investment proportions by type of return (%)

Progress of work to obtain permits

To develop new settlements, in addition to the technical-economic feasibility criteria, Snam adopts procedures that respond to stringent environmental and safety compatibility assessments.

Environmental impact assessments cover all phases of the life cycle of the work, location, design, construction,

operation and disposal. These assessments are carried out as part of the Environmental Impact Assessment (EIA) procedures, at the end of which the administrations in charge, both at central and local level, issue the authorisations required by current legislation.