Technical investments

Technical investments in 2019 amounted to €813 million, an increase of €49 million, or 6.4%, compared with 2018 (€764 million).

The investments were classified in accordance with Resolution 575/2017/R/gas with reference to 2018 and 2019 and 514/2013/R/gas for investments in 2017 whereby the Energy, Networks and Environment Regulatory Authority (hereinafter ARERA or the Authority) identified different categories of projects with different rates of return.

The main investments in new transport capacity Development (€249 million), for which a greater return of 1% is planned, mainly involve:

• investments in the development of new transport capacity in the National Network function to the import and export capacity (€142 million) under the scope of transport network upgrading projects in southern Italy including, specifically, connection with TAP (€95 million) and the ongoing construction works for connection to the Massafra-Biccari pipeline (€13 million), the initiative supporting the market in the north-eastern part of the country and to allow the reversal of physical transport flows at the connection points with northern Europe in the area of the Po Valley (€32 million) due to the continuation of the complementary construction works for the Cervignano-Mortara pipeline and the Sergnano and Minerbio compression plants that came into service from October 2018;
• Investments in the development of new transportation capacity in the Regional Network and the National Network (€107 million), including: (i) the works relating to the connection of Italgas Storage S.r.l. of Cornegliano Laudense; (ii) the continuation of the construction and connection works related to the gas conversion of the Calabria Region, including, specifically, the construction activity of the S. Andrea Apostolo-Caulonia pipeline; (iii) the continuation of the construction activities for certain biomethane and CNG connections; (iv) the completion of the complementary construction activities relating to the upgrading of the Gavi-Pietralavezzara pipeline;

Replacement investments and other investments with a basic rate of return¹² (€564 million) relate mainly to: (i) works aimed at maintaining the security and quality levels of the plants (€418 million), some of the main ones being the “pipeline replacement” initiative (€126 million), including the ongoing delivery of materials and the start of construction activities for the reconstruction of the Ravenna-Recanati section of the Ravenna-Chieti pipeline (€49 million); (ii) projects relating to the development of new information systems, as well as the implementation of existing ones (€100 million); (iii) works recharged to third-parties (€19 million); (iv) the purchase of key operating assets (€18 million); (v) redelivery facilities upgrading projects (€6 million).

Progress of work to obtain permits

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

The assessments of environmental effects involve all phases of the work life cycle, site selection, planning, construction, operation and decommissioning. These assessments are made within the purview of the Environmental Impact Assessment (EIA) procedure and the procedures of the Integrated Environment Authority (AIA), at the end of which the central and local administrations issue the permits required under current law.