Snam, the prominent Italian gas grid operator, has unveiled its new strategic plan for 2023-2027, outlining a substantial increase in spending on energy transition businesses and infrastructure. The company plans to invest €11.5 billion ($12.52 billion), representing a 15% increase from its previous plan for 2022-2026.
Focus on Energy System Flexibility
In line with its strategic plan, Snam aims to enhance the flexibility of the energy system through targeted investments. These investments will support the improvement of transport, storage, and liquefied natural gas (LNG) infrastructure.
Transport Infrastructure Upgrades
Snam has allocated €7.4 billion to enhance its transport capabilities, including the replacement of approximately 900 kilometers of pipeline. Additionally, the company plans to construct new compressor stations and establish connections with biomethane plants and floating storage regasification units for LNG processing by ship.
Storage Expansion and Upgrades
An additional €1.4 billion will be invested in expanding and upgrading storage sites. This considerable investment will enable Snam to increase its storage capacities, ensuring efficient and reliable supply.
Advancing LNG Infrastructure
Recognizing the importance of LNG as a clean energy source, Snam has allocated €1.5 billion toward the development of LNG infrastructure. These investments will support the growth and accessibility of LNG, facilitating its utilization across various sectors.
Energy Transition Initiatives
Snam is dedicated to driving the energy transition and has committed €1.2 billion to various initiatives. This includes the commissioning of biomethane plants, carbon capture and storage projects, hydrogen advancements, and energy efficiency endeavors. By investing in these areas, Snam aims to contribute significantly to a sustainable future.
Ambitious Growth Targets
Snam’s strategic plan also sets ambitious growth targets for the coming years. The company aims to achieve a compound annual growth rate of over 7% for adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). Additionally, it targets a growth rate of approximately 4% for adjusted net income during the specified period.
By 2027, Snam expects its EBITDA to reach around €3.2 billion, a notable increase from the reported €2.22 billion in 2022.