Snam, Eni's gas network subsidiary in Italy, has unveiled a €6bn investment plan over the 2014-2017 period. The overall investment plan in the 2014-2017 period for the domestic market includes €1.3bn to be spent in 2014. The plan is aimed at further developing the gas infrastructure system in Italy, with a view to promoting the true interconnection of the European networks, increasing diversification of supply and flexibility of the system. Snam Rete Gas aims to develop infrastructure along Italy’s South-North backbone and in the Po Valley, with the aim of further strengthening the security of the gas system by increasing the transport capacity in the North of the Country, while at the same time making physical export to northern Europe possible. The 2014-2017 plan envisages an extension of the gas network of about 1,000 km (+3% versus 32,306 km as at the end of 2013). The investments in the storage business for 2014-2017 are expected to deliver a roughly 18% increase in modulation capacity (from 11.4 bcm in 2013 to around 13.5 bcm by 2017) and a 12% increase in peak capacity (from 281 to 316 mcm/d). The projects planned for the 2014-2017 period and the portfolio optimization will allow the Company to grow the number of meters to an expected 6.6 million units by 2017, an increase of 12% over the 5.9 million units at the end of 2013.
Moreover, Snam has signed a Memorandum of Understanding with Cassa Depositi e Prestiti (CDP) for the potential purchase by Snam of CDP’s stake in TAG, the company holding transport rights in the pipeline connecting the Slovakian-Austrian border with the entry-point of Tarvisio in Italy (transport capacity of around 48 bcm of gas). CDP acquired a 89% stake in the TAG pipeline from Eni in June 2011, for about €650m-€700m, as Eni had to divest some gas assets.