Natural gas storage

The total storage capacity in 2020, including strategic storage, amounts to approximately 17.0 billion cubic metres, continuing again in 2020 to represent the largest capacity at the European level.

The storage system makes it possible to compensate for the different requirements for gas supply and consumption: whilst supply has a substantially constant flow throughout the year, gas demand is concentrated mainly in the winter period. Storage also ensures that quantities of strategic gas are available to compensate for any lack of or reduction in non-EU supply or crises in the gas system.

The storage business makes use of an integrated group of infrastructure comprising deposits, wells, gas treatment plants, compression plants and the operational dispatching system. Snam has nine storage concessions located in Lombardy (five), Emilia-Romagna (three) and Abruzzo (one). In 2015, the Bordolano site began operating, gradually increasing the capacity offered to a total of 1,050 million SCM.

9
Operating concessions

19.60 bcm
Gas moved through the storage system

17.00 bcm
Total storage capacity

Stogit provides its storage services (peak modulation, uniform modulation, strategic, transporter balancing, mining, short-term allocation services and, from 2018, the new Fast Cycle49 service, to 91 operators based on the Storage Code approved by the Italian Regulatory Authority for Energy, Networks and the Environment (hereinafter also ARERA).

In 2020 Snam took action to promote the replenishment of national storage facilities for the purpose of being able to manage seasonal peaks in demand. The replenishment level at the end of the injection campaign (October 2020) was 99.01%, in line with the European average.

The market oriented approach adopted allowed the Company to increase the mix of customers owing a Storage contract (not only shippers serving end users but also traders who maximise revenues from buying and selling gas to the PSV – virtual trading point) as well as attracting major European players.

Total storage capacity at the end of 2020, holding strategic storage equal, came to 17.0 billion cubic metres, thanks to the gradual increase in operations at the Bordolano field.

A result that attests to Stogit’s ability to respond to both the needs of the national market as well as the contingent dynamics linked to international markets and policies, which can significantly modify demand by increasing the value of business with policies to support the security of supplies.

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Key performance indicators

(million euros)

2018

2019

2020

Change

% change

Total revenues (a)

595

591

689

98

16.6

Total revenues net of pass-through items (a)

509

508

504

(4)

(0.8)

- of which regulated revenue (a)

505

505

499

(6)

(1.2)

Operating costs (a)

161

149

263

114

76.5

Operating costs net of pass-through items (a)

74

66

78

12

18.2

EBIT

335

337

314

(23)

(6.8)

Technical investments (b)

99

112

134

22

19.6

Net invested capital at 31 December

3,397

3,421

3,460

39

1.1

Concessions (number)

10

10

10

 

 

– of which operational (c)

9

9

9

 

 

Natural gas moved through the storage system (billion cubic metres) (d)

21.07

19.33

19.60

0.27

1.4

- of which injected

10.64

10.16

9.30

(0.86)

(8.5)

- of which withdrawn

10.43

9.17

10.30

1.13

12.3

Total storage capacity (billion cubic metres)

16.90

17.00

17.0

 

 

- of which available (e)

12.40

12.50

12.5

 

 

- of which strategic

4.5

4.5

4.5

 

 

Employees in service at 31 December (number)

59

61

62

1

1.6

(a)

Before consolidation adjustments.

(b)

Investments remunerated at a real base pre-tax WACC of 6.7%, for 2020 and 2019 (6.5% for 2016-2018).

(c)

Working gas capacity for modulation services.

(d)

Volumes of gas are expressed in Standard cubic metres (SCM) with an average Higher Heating Value (HHV) conventionally set to 39.3 MJ/Scm (10,893 KWh/SCM) for natural gas storage for thermal year 2020-2021 (approximately 39.3 MJ/SCM, 10,895 KWh/SCM, for the thermal year 2019-2020).

(e)

Working gas capacity for modulation, mining and balancing services. The value shown represents maximum available capacity, entirely awarded for thermal year 2020-2021.

49 The storage service involves constant injection services and supply availability.

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