Liquefied natural gas (LNG) regasification
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Key performance indicators |
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First half |
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(€ millions) |
2016 |
2017 |
Change |
% Change |
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Total revenue (*) |
10 |
12 |
2 |
20.0 |
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Regulated revenues |
10 |
11 |
1 |
10.0 |
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- of which revenues net of components offset in costs |
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1 |
1 |
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Operating costs (*) |
6 |
7 |
1 |
16.7 |
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EBIT |
1 |
3 |
2 |
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Technical investments (**) |
2 |
1 |
(1) |
(50.0) |
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Volumes of LNG regasified (billions of cubic metres) |
0.092 |
0.169 |
0.077 |
83.7 |
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Tanker loads (number) |
2 |
4 |
2 |
100.0 |
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Employees in service at year end (number) |
73 |
68 |
(5) |
(6.8) |
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Results
Total revenue amounted to €12 million, up by €2 million (20.0%) compared with the first half of 2016. Total revenue, net of components offset in costs10, rose by €1 million (10.0%) compared with the corresponding period of the previous year.
Revenue from regulated activities, equal to €10 million, net of items offset in costs, are in line with the first half of 2016 and refer mainly to the applicable portion of the guarantee factor for 2017 (€8 million), established by Article 18 of Annex A of resolution 438/2013/R/gas11.
Non-regulated revenue equal to €1 million rose by €1 million compared with the first half of 2016, basically following higher income from sales of natural gas for boil-off purposes12.
EBIT amounted to €3 million, up by €2 million compared with the first half of 2016. The increase is due to higher revenues (+€1 million) and lower amortisation and depreciation for the period (+€1 million).
Technical investments
Technical investments in the first half-year totalled €1 million (€2 million in the first half of 2016) and involved maintenance projects aimed at guaranteeing plant system safety.
Operating review
During the first half of 2017, the Panigaglia (SP) LNG terminal regasified 0.169 billion cubic metres of natural gas, an increase of 0.077 billion cubic metres compared with the first half of 2016 (0.092 billion cubic metres) of which 0.084 billion cubic metres were regasified as part of the integrated regasification and storage service13. In the first half of 2017 4 loads were unloaded from methane tankers, 2 as part of the above-mentioned integrated service.
Regulation
Resolution 141/2017/R/gas – “Launch of the process for the preparation of provisions on the issue of tariffs for the use of LNG terminals for the fifth regulatory period and on accounting separation for small scale LNG services”
Through resolution 141/2017/R/gas, published on 17 March 2017, the Authority launched the process for defining the tariff regulation for the next natural gas regasification service regulatory period, assuming the launch will be postponed until 2019 rather than taking place in 2018. The resolution also launches a procedure aimed at transposing the provisions of Legislative Decree 257/16 “Rules for implementing directive 2014/94/EU of the European Parliament and Council of 22 October 2014 on the creation of an infrastructure for alternative fuels” on the issue of accounting separation for activities relating to small scale LNG services.
Consultation document 485/2017/R/gas – “Regasification service tariff regulation criteria for LNG for the fifth regulatory period and for the 2018 and 2019 transition period”
Through consultation document 485/2017/R7/gas, published on 29 June 2017, the AEEGSI submitted guidelines for the updating of the natural gas regasification service tariff criteria. Specifically, there was a proposal to introduce a 2-year transition period (2018 and 2019), also in order to maintain the alignment with the fifth regulatory period of the transportation service, which it was proposed will run from 2020 (Ref. DCO 413/2017/R/gas). The criteria for this period will be the subject of a specific provision which will be adopted by next September, and it is proposed that the general principles of the regulations in force will essentially be maintained, while the regulatory hypotheses for the fifth period will be illustrated in later consultation documents.
Determination DIEU 7/2017 – “Authorisation of the provision of amounts due relating to the factor for covering revenue attributable to the company GNL Italia S.p.A. for the year 2016”
Through determination DIEU 7/2017, published on 7 June 2017, the Authority approved the amount of the factor for covering revenue relating to GNL Italia for 2016 at €15.6 million.
10 Revenue, net of components offset in costs, includes the recharging to customers of expenses relating to natural gas transportation services provided by Snam Rete Gas S.p.A. For the purposes of the consolidated financial statements, this revenue is eliminated, together with transportation costs, within GNL Italia S.p.A. in order to represent the substance of the operation.
11 The guarantee factor ensures the regasification company is covered for a portion of the revenues calculated on the basis of a parameter applied to the reference revenues. This parameter was set for 2017 at 64%.
12 Recovering boil-off gas involves reusing the vapours formed inside tanks. The gas recovered was subsequently injected into the transportation network.
13 This service, introduced by Article 14, paragraph 1 of Decree-Law 1 of 24 January 2012 and later governed by the Ministerial Decree of 25 February 2016, makes provision that the leading storage company makes delivered quantities of gas equivalent to LNG available to the user for the uniform storage service, minus consumption and leaks, by the end of the month after unloading. The physical management of gas flows for redelivery of gas in storage takes place by coordinating the regasification and storage companies involved. With regard to the contractual period from 1 April 2017 to 31 March 2018, the Ministry of Economic Development established, by the Decree of 7 December 2016 (Official Gazette, General Series, No 295 of 19 December 2016), as supplemented by the Decree of 13/02/2017 (General Series No. 46 of 24 February 2017), that storage capacity of 1.5 billion cubic metres should be allocated for the integrated storage and regasification service. Access to the service is obtained through a competitive auction whose reserve price has been defined by the Authority on the basis of the criteria set forth in resolution 6/2017/R/gas depending on the product and market trends.