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Strategy

 

Vision to 2030

Over the last years, Snam has repositioned to be a key player in the major transformation underway in the energy sector. The track record in implementing and managing projects in natural gas transport and storage, new skills in green gases and energy transition new trends, an increased international footprint in promising areas also for integrated greenfield projects, the large number of partnerships with different investors across different geographies, coupled with a strategy focused on ESG, will be key to develop the energy system of the future, competitive, safe and with zero net emissions.

Snam will be able to take advantage of new and relevant development opportunities throughout the next decisive decade, in which a strong acceleration of the energy transition is required to achieve net zero targets with rising investments; more specifically, in energy transport and storage infrastructure, as well as in projects along the entire green gases value chain. For this reason, in addition to the plan to 2025, which includes investments already in the money today, Snam has developed a longer-term vision to 2030. 23 billion euros of investment opportunities are expected in the 2021-2030 period in three growth areas: energy networks, energy storage and green energy projects.

Energy networks: evolution towards a multi-commodity infrastructure able to transport not only natural gas in the transition phase, but also biomethane and hydrogen as well as carbon dioxide, wherever necessary. A dedicated hydrogen network will be progressively developed by repurposing existing pipelines. Up to €15 bn of investments, of which 12 bn in natural gas and biomethane transport (70% of which in replacements with H2 ready standards over 3,000 km of pipelines as well as maintenance, the remaining part for the conversion of six dual fuel compression stations, support to new demand such as the Sardinia project and new connections, as well as initiatives on emission reductions and digitalisation) and 3 bn in hydrogen transport (by repurposing 2,700 km of network from Mazara del Vallo to Passo Gries and Tarvisio for the transport of hydrogen from Italy to higher demand areas in Northern Europe).

Storage: evolution towards a multi-commodity energy storage company (natural gas,biomethane, hydrogen, carbon dioxide), also considering sector coupling solutions, for instance through batteries. Up to €5 bn of investments, of which 3 bn in natural gas and biomethane storage (consolidation of existing activities, development of H2-ready investments, conversion of six dual-fuel compression stations) and 2 bn in new energy storage (including hydrogen, CO2 and natural gas and biomethane). 

Green energy projects: move from pilot to scalable projects towards the development of integrated green gas projects (biomethane and hydrogen), along the entire value chain to foster market development and contribute to decarbonisation. The evolution of the existing platforms will continue pursue bigger hydrogen, biomethane and CCS projects in Italy and abroad. Up to €3 bn of investments, leveraging on existing platforms to develop sizeable hydrogen initiatives also by means of grants and funding opportunities.

2021-25 Plan: €8.1 bn of investments

Snam’s new capex plan envisages an increase in investments of almost € 700 mln compared to the €7.4 bn of the 2020-2024 plan, bringing them to €8.1 billion in the 2021-2025 period. The Plan includes the maintenance, upgrade and development of its infrastructure, net zero investments and the acceleration of the energy transition. Investments aligned to the European taxonomy account for 47% of the total (an increase compared to 40% in the previous plan). Regulated activities are substantially in line with the previous plan even though with a different mix.

The plan envisages approximately € 400 million of investments in digitalization – from remote control of activities to the adoption of IOT, cloud and edge computing – to allow Snam to become the most technologically advanced gas transmission company in the world and to guarantee ever greater safety and sustainability of operating activities.

 

Overall capex mix (%)

Investments: €8.1 bn

 

47% of capex aligned with taxonomy: breakdown (mln)

Investments: €3.8 bn

 

 
 

5.6

billion euro

in energy networks in Italy

1.2

billion euro

in energy storage

1.3

billion euro

in green energy projects

Energy networks in Italy: replacements to upgrade the network with "hydrogen ready" pipelines continue, with 1,300 km coming on line. Investments are also planned to achieve the net zero target, including the dual-fuel conversion of the first three compression stations. Other investments include the start of the construction of the virtual pipeline in Sardinia, the first portions of the network as well as ordinary maintenance activity. The investment plan also includes new connections linked to the energy transition.
Energy storage: investments amount to €1.2 bn; a significant increase versus 900 mln in previous Plan thanks to the conversion of three dual fuel compression stations (coherently with emissions reduction targets), the construction and upgrading of gas storage wells, the replacement and upgrading of certain components, and maintenance activities. These investments will support the growing need for flexibility which will increase with the further development of renewables. Furthermore, these investments will enable the prospect to store hydrogen.
Green energy projects: in recent years Snam has created a broad and diversified platform of activities (energy efficiency, biomethane production and infrastructure, sustainable mobility, hydrogen along the entire value chain) to offer integrated solutions along the entire green gases value chain. For the 2021-2025 period, Snam's investments in energy transition activities will amount to approximately €1.3 bn (net of about 200 mln in possible grants, of which 100 mln in hydrogen and 100 mln in biomethane), an increase compared with 700 mln in the previous Plan. New businesses are expected to contribute to Group’s annual EBITDA for 150 mln in 2025, through projects that, once completed, will generate around €180 mln in EBITDA.

 

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GROWTH DRIVERS

Snam pursues a sustainable model of growth, in order to create value through these main strategic drivers:

  • long term RAB growth
  • green energy projects
  • international associates
  • solid financial structure and sustainable finance
  • enhanced targets on emissions reduction and growing committment to ESG

 

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SNAM PURSUES A SUSTAINABLE MODELS OF GROWTH

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SUSTAINABLE GROWTH
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GROWTH DRIVERS:

Long term RAB growth

Energy networks: replacement cycle ramp up (€5.6 bn); Energy storage: increase performance and refurbish assets (€1.2 bn)

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GROWTH DRIVERS:

Green energy projects

Offer aintegrated solution along the entire green gases value chain.

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GROWTH DRIVERS:

International footprint

Leader in energy infrastructure on an international level

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GROWTH DRIVERS:

Solid financial structure and sustainable dìfinance

Increase the weight of sustainable finance from current 60% to over 80%

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GROWTH DRIVERS:

Emissions reduction and ESG

Enhanced targets on emissions reduction Scope 1, 2 and 3 and growing committment to ESG

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GROWTH DRIVERS:

Shareholders Return

5% DPS annual growth to 2022 confirmed, 2.5% DPS minimum annual growth 2022-25

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OUR VALUES:

WE PROMOTE THE SECURITY

 

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VALUES:

2...

22 

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VALUES:

3...

33 

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OUR VALUES:

WE CONNECT TO BUILD OPPORTUNITIES

 

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OUR VALUES:

WE SUPPORT A CHANGING WORLD

 

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OUR VALUES:

WE SHAPE THE FUTURE

 

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Strategia

SHAREHOLDERS RETURN

Snam confirms its commitment to guarantee to shareholders an attractive and sustainable remuneration and the payment of an interim dividend. The growth of the dividend per share of 5% until 2022 is confirmed, minimum growth of 2.5% in 2022-2024 extended to 2025.

Snam expects that in 2022 an overall divided of 0.2620 euros per share will be distributed on full year 2021 results (of which 40% as an interim dividend with payment in January 2022 as resolved by the Board of Directors last November 3rd and the remaining 60% as a balance with payment in June 2022).

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updated
01 August 2022 - 13:49 CEST