Company profile and strategy



Snam and its business model

Snam is Europe’s leading gas utility. Founded in 1941 as “Società Nazionale Metanodotti”, it has been building and managing sustainable and technologically advanced infrastructure guaranteeing energy security for over 75 years. Snam operates in Italy and, through subsidiaries, Austria (TAG and GCA), France (Teréga) and the United Kingdom (Interconnector UK). It is one of the main shareholders of TAP (Trans Adriatic Pipeline) and is the company most involved in projects for the creation of the Energy Union.

First in Europe by transport network size (over 32,500 km in Italy, about 40,000 with international subsidiaries) and natural gas storage capacity (16.7 billion cubic meters in Italy, about 20 billion with international subsidiaries), Snam manages the first liquefied natural gas (LNG) plant built in Italy and it is a shareholder of the country’s main terminal.

Snam’s business model is based on sustainable growth, transparency, promotion of talents, and development of local areas by dialoguing with communities. It fosters sustainable mobility, expands its business into energy efficiency, and invests in biomethane and innovative Technologies to increase the use of renewable gas as a key resource for the green economy.


With the separation of Italgas and the initiation of the new organisation that led to the creation of four Business Units for the management and control, respectively, of growth and development activities, the management of Italian subsidiaries, the coordination of foreign equity Investments and the offer of its know-how to support infrastructures and services of the natural gas industry.

Snam promotes the use of natural gas, as a flexible, safe and low environmental impact. In the next years Snam will develop several projects, aiming at promoting Compressed Natural Gas (CNG), biomethane, Liquified Natural Gas (LNG) in trasports. The company aims also at fostering new technologies, such as gas heat pumps and power to gas. Snam’s business is mainly focused on regulated activities. Regulation makes provision for tariff systems that cover the costs incurred by the operator and for a fair return on invested capital. Snam is therefore able to maintain a limited risk profile and to provide its shareholders with attractive and sustainable returns, while ensuring that it provides its services to all operators in a non-discriminatory manner and with the highest standards of quality and safety.

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The regulation

Snam is focused on regulated activities, in order to maintain a limited risk profile. Almost all Snam’s consolidated revenues are "regulated", subject to the regulation set by the Regulatory Authority for Electricity, Gas and Water (AEEGSI),in order to ensure that transportation, regasification, storage and distribution services are provided to third parties according to non-discriminatory criteria and at regulated tariffs.

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International strategy

Snam is expected to enhance the value of existing participations and create opportunities to fully exploit its expertise in transport infrastructures: in particular, the areas of interest are the integration of European market with debottlenecking of borders and reverse flow, and new routes to Europe to strengthen the southern corridor and the Mediterraneo hub. The approach of Snam will be selective, with a strict financial discipline, and will target on assets with capex opportunities and a risk profile comparable with current portfolio.

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Business strategy

In all its activities, in Italy and abroad, Snam pursues a sustainable and socially responsible model of growth, in order to create value for the company and for the communities in which it operates through these main strategic drivers: continuous improvement in core business; enhanced exposure to the energy transition; strong performance of international activities; optimization of financial structure.
In November 2018 Snam has envisaged an increase in investments to € 5.7 billion for the 2018-2022 period, up 10% compared to the plan’s € 5.2 billion presented in the 2017-2021 Plan. The increase compared to the previous plan is due to both investments in new businesses and an increase in investments in maintenance and replacement activities. The €5.7 billion investment can be broken down into €4.8 billion of planned investment for the transportation network, €0.7 billion for storage and regasification and €0.2 billion for new businesses linked to the energy transition. Approximately a quarter of the plan’s investments concerns development initiatives, including the TAP interconnection, connections in the North-West to service the local market and cross-border flows, the network in Sardinia and upgrading of the Fiume Treste storage facility.

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Financial strategy

As the operational and financial efficiency are concerned, in the 2018-2022 plan the company's target expects to maintain flat in real terms the controllable fixed costs. From a financial prospective, having successfully established a new Group financial structure in 2012, Snam began work to optimize this in 2013, with the aim to achieve a competitive cost of debt over time as well as to make the debt structure more consistent with business requirements, both in terms of financing maturity and of exposure to changes in interest rates. 

Finally, Snam is committed to provide an attractive and sustainable remuneration of its shareholders in the medium and long term. Snam forecasts that for 2018 a total dividend of € 0.2263 per share will be distributed in 2019 (of which 40% will be through an advance payment in January 2019, and the remaining 60% to be paid in June 2019, subsequent to approval at the Shareholder Meeting in April 2019).

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07 February 2019 - 13:54 CET