Eni S.p.A., an Italian multinational oil and gas company and Snam, a natural gas infrastructure company based in San Donato Milanese, have signed a framework agreement for the development of methane gas stations in Italy, as part of a wider set of initiatives to promote sustainable mobility.
The partnership aims at developing new compressed natural gas (CNG) and liquefied natural gas (LNG) plants within Eni’s national network of stations, favouring the supply of low-emission alternative fuels such as natural gas. Natural gas eliminates particulate matter, the most polluting element in urban areas, and ensures considerable economic advantages to customers.
The framework agreement is part of Snam’s initiatives to promote sustainable mobility, with an investment of EUR 150 million (USD 168m) by 2021 to roll-out up to 300 new CNG service stations in order to support the development and a more balanced distribution of natural gas fuelling stations in different regions across the country, thus also improving the quality of supply service to users.
Through this initiative Eni intends to further strengthen its offer for sustainable mobility. At present approximately 1,000 of Eni’s stations deliver LPG and methane (including 2 LNG and 180 CNG), while the remaining 3,500 deliver Eni Diesel+, its premium diesel with 15% renewable content produced from vegetable oils at its Venice biorefinery.
With well-established and globally cutting edge technology, Italy is the leading European market for natural gas consumption for vehicles, with over 1 billion cubic meters consumed in 2015 and about 1 million natural gas vehicles (NGVs) currently in circulation.
The framework agreement and the subsequent contracts for the implementation of the initiative will provide a further boost to the natural gas industry from the transport sector, which is globally recognized for its technological and environmental excellence, and is able to leverage Europe’s largest, most accessible gas pipeline network, stretching more than 32,000 km.
Snam and Eni are related parties as the Italian Ministry of Economy and Finance exerts de facto control over Eni, by virtue of its participation in such company, and controls CDP S.p.A. which, in turn, exerts de facto control over Snam, pursuant to international accounting standard IFRS 10 – Consolidated Financial Statements.
(Source: Eni S.p.A)