Snam (SRG) Status Update summary

Strategic context and energy landscape

• Energy markets remain volatile due to geopolitical tensions, supply constraints, and rising global demand, with gas playing a crucial backup role amid renewable intermittency.

• Clean molecules, tech neutrality, and EU policy targets for biomethane and carbon capture are central to net zero, with Italy positioned as a Med-EU energy bridge and leader in green molecules and hydrogen infrastructure.

• Infrastructure redundancy, diversification, and resilience are prioritized to ensure supply security and support the transition to green and decarbonized molecules.

• Snam aims to become a pan-European multi-molecule infrastructure leader, focusing on gas, hydrogen, biomethane, and CCS.

Investment and capital allocation

• €12.4bn CapEx planned for 2025-2029 (net of grants), with 70% for green and decarbonized gas infrastructure and 41% taxonomy aligned.

• Major projects include the Adriatic Line, pipeline replacements, dual-fuel compression, LNG, biomethane, and CCS scale-up.

• Flexibility in CapEx allows redirection between gas, hydrogen, and CCS projects based on returns and regulatory developments.

• 70% of gas infrastructure CapEx is already authorized, minimizing permitting risks.

• €1bn in grants assumed, with high visibility as half is already assigned.

Operational achievements and innovation

• 2,000 km of network certified as hydrogen-ready, LNG capacity increased to 19 BCM, and storage capacity to 17.3 BCM.

• Innovation investments total €400m, with a dual-track approach in proven and explorative technologies, including digitalization and AI.

• Significant progress in biomethane and CCS, with the Ravenna project advancing and strong industrial interest.

• The SoutH2 Corridor will establish a hydrogen pipeline from North Africa to Germany, leveraging repurposed infrastructure and European partnerships.

• Methane emissions reduced by 62% since 2015, with Scope 1 and 2 emissions down 25% since 2022.