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, in Albania (AGSCo), Austria (TAG and GCA), France (Teréga), Greece (DESFA) and the United Kingdom (Interconnector UK). It is one of the main shareholders ofTAP (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 (32,625 km in Italy, over 41,000 with international subsidiaries) and storage capacity (16.9 billion cubic meters in Italy, more than 20 bcm with international subsidiaries), Snam manages the first liquefied natural gas (LNG) plant built in Italy and is a shareholder of Adriatic LNG, the country’s main terminal and one of the most strategic in the Mediterranean, and -via DESFA - in the Greek terminal in Revithoussa, with a total pro rata regasification capacity of around 6 bcm per year.

Snam’s business model is based on sustainable growth, transparencynurturing talent, and  development of local areas by constantly listening to and exchanging dialogues with local communities, also thanks to the social initiatives of the Snam Foundation.



Through the Snamtec project, launched in 2018 and increased in the 2019-2023 Plan, Snam has given a great boost to investments for energy transition, focused on technology initiatives, innovation and R&D supporting large national and international networks and green economy businesses, like sustainable mobility, renewable gas, hydrogen and energy efficiency.

> Creating sustainable value: the Snam business model



Snam promotes the use of natural gas, as a flexible, safe and low environmental impact. Snam has launched several projects, aiming at promoting biomethane, Liquified Natural Gas (LNG) in trasports, hydrogen.

> More about natural gas


The regulation

Almost all Snam's revenues are regulated. The Regulatory Authority for Energy, Networks and Environment (ARERA) regulates the different tariff system for transportation, storage and regasification services, defining the criteria for setting the tariffs in each regulatory period, which normally lasts for 4 years. The regulation ensures that the services are provided to third parties according to non-discriminatory criteria. Snam is therefore able to maintain a limited risk profile and to provide its shareholders with attractive and sustainable returns.

> More about the regulation


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.

> More about the international strategy


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: the continuing improvement in the results of core business; the growing exposure to energy transition; the solid performance of international activities; and the ongoing optimization of financial structure.

Snam has forecast an increase in investments for the period 2019-2023, bringing them up to € 6.5 bn, approximately 14% more than the € 5.7 bn of the 2018-2022 Plan. The growth is attributable both to the new energy transition businesses and to the increase in investments in replacement. In detail, € 5.3 bn of the investment concern the transportation network, € 0.8 bn refer to storage and regasification and € 0.4 bn to the new businesses linked to the energy transition. The development initiatives refer to the completion of the infrastructure to connect TAP to the national network, the completion of connections in the North-West to serve the local market and cross-border flows, the network in Sardinia and the start of the conversion of six compressor stations and storage plants in gas-electric hybrids.

> More about the business development


Financial strategy

As the operational and financial efficiency are concerned, in the 2019-2023 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 confirms its committed to guarantee shareholders an attractive and sustainable remuneration and the payment of an interim dividend. The dividend growth is expected to be 5% per year up to 2022. Snam expects that for the year 2019 a total dividend of € 0.2376 per share may be distributed in 2020.

> More about the strategy

> More about company targets and achievements

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27 January 2020 - 10:32 CET