Massive Natural Gas Filling Station Expansion Planned for Italy

Italy-CNG-1_2 Snam S.p.A., one of Europe’s main regulated gas companies, is generating considerable momentum for Italy’s natural gas vehicle market with two major announcements this week. The first is with api Group, an Italian energy and construction multi-faceted company. The second is with Snam4Mobility, a subsidiary of Snam. Collectively, they will grow natural gas refueling infrastructure by 20% across the nation.

Snam and api Group have signed a framework agreement for the development of approximately 200 new natural gas and biomethane fuelling stations in Italy, within IP commercial network. The agreement is part of both companies’ commitment to promoting sustainable mobility and aims to extend the distribution network of natural gas for transport throughout the country.

Under the agreement, Snam and api Group will jointly identify existing fuelling stations on the IP ordinary and motorway networks where they will be able to install facilities to supply CNG (compressed natural gas) to cars. Distributors of LNG (liquefied natural gas) for heavy-duty vehicles are also under consideration. The first 30 stations will be contractualized within the first few months of 2019.

The diffusion of innovative and sustainable fuels such as methane is consistent with the development path of the api Group which is today, with over 5000 service stations throughout Italy, the leading Italian operator in the fuel sector by number of distribution points. Today’s agreement with Snam is a firm contribution to the creation of an efficient national infrastructure for alternative fuels, which is one of api Group’s main objectives.

Eni and Snam, through its subsidiary Snam4Mobility, have signed a second contract implementing the framework agreement signed in May 2017, aimed at creating 20 new CNG (compressed natural gas) refuelling stations for vehicles in Italy, as part of both companies’ commitment to promoting sustainable mobility in the country.

The deal follows the contract signed a few months ago to create a group of 14 CNG stations, of which the first are due to open within the first quarter of 2019. Under the agreement, Snam will design, create and maintain 20 new CNG stations within Eni’s national distributor network. The investment for these activities is expected to be within the region of €10 million.

The contract announced today is among many initiatives that Snam4Mobility is leading to promote sustainable mobility throughout Italy, to the benefit of both the environment and consumers. These initiatives are aimed at sector operators to support the development of natural gas and biomethane refuelling stations and their greater presence in the country’s various regions, which will also help improve the quality of supply to consumers.

Eni’s aim is to further strengthen its sustainable mobility offering with this initiative. Within Eni’s network of 4,400 stations, 3,500 supply Eni Diesel+, the premium diesel with a 15% renewable component made from vegetable oils (including used vegetable oils) at the Venice bio-refinery using proprietary technology, while around 1,000 stations supply LPG and methane (2 of which are LNG and 180 are CNG).

Italy the European Leader for NGVs

Italy is the leading European market for natural gas consumption for vehicles, with over 1 million existing vehicles using CNG. Liquefied gas is an immediate and readily available solution to eliminate particulate matter and reduce CO2 emissions in heavy-duty transport, and is growing rapidly: the number of vehicles using this fuel in Italy has increased from less than 100 in 2015 to approximately 1,000 today.

Natural gas is one of the best technologies available to help reduce emissions in mobility, with benefits in terms of air quality, as well as significant financial advantages for consumers. Mobility using natural gas is also becoming increasingly renewable through the gradual development of a biomethane supply chain that uses existing facilities.

Source: Snam SpA – a member of NGVA Europe