Snam to invest €11.5 billion by 2027

In its new strategy, the state-controlled group will focus on the construction of a new pipeline and the completion of liquefied natural gas (LNG) infrastructure.

It will also invest in energy transition businesses including a carbon capture and storage hub and the development of a European hydrogen network.

"We will invest €11.5 billion to develop an increasingly flexible infrastructure ...thus supporting the carbon neutrality pathway for Italy," CEO Stefano Venier said in a statement.

The group expects 7.4% average annual growth for its adjusted core earnings in the period versus 7% under its previous plan.

Adjusted net income is projected to rise by around 4% each year on average, up from 3% in the previous strategy.

The group also promised minimum annual dividend growth of 3% starting from its payout on its 2024 results.

Net debt is expected to rise to €19 billion by 2027 with the average cost of debt projected to rise to 2.6%. Part of the investments will be dedicated to the Adriatic Line, the new pipeline aimed at boosting capacity to transport gas from southern Italy – where the fuel arrives from Africa – to the industrialised north and abroad.

The infrastructure will be hydrogen-ready to be part of a new network dubbed SoutH2 aimed at bringing the fuel from Africa to northern Europe in the long-term.

The group is also working with energy group Eni, on a carbon capture and storage hub offshore Ravenna.

In its plan, Snam added a commitment to achieve net-zero across all emissions by 2050.

Read the article online at: https://www.worldpipelines.com/business-news/26012024/snam-to-invest-115-billion-by-2027/