Snam seeks EU funds to boost Italy's gas grid, CEO says
MILAN, Feb 1 (Reuters) - Italy urgently needs to expand the capacity of its gas grid, the CEO of network operator Snam said, adding the group would seek European Union funds to support the development.
Last year Rome was quick to secure an increase in gas flows from Algeria and other African countries through pipelines coming ashore in southern Italy. That was necessary after Russia curtailed its supply arriving in the north.
|
Advertisement: The National Gas Company of Trinidad and Tobago Limited (NGC) NGC’s HSSE strategy is reflective and supportive of the organisational vision to become a leader in the global energy business. |
The change in flows has exhausted the capacity of the Italian grid to move gas from the south to the industrialised north, Snam CEO Stefano Venier said. The Italian government also sees a growing role for the country as a hub for transporting energy supplies from Africa to northern Europe.
Snam would press on with a planned 2.5 billion euro ($2.7 billion) investment to complete an additional pipeline called the Adriatic Line, Venier added.
"The Adriatic Line is an urgent piece of work because our network no longer has capacity margins for transporting gas from south to north," Venier told Reuters in a phone interview.
He added that, without expansion works, the grid managed by the state-controlled group would not be able to accommodate higher fuel supplies expected in the next few years.
"Once I have all the green lights in Italy, I will go to Brussels and ask for funds," Venier said, adding he hoped to secure a final go ahead from Italian regulator ARERA by the end of this month or the beginning of March.
The RePowerEU plan, EU's strategy to cut energy dependence on Russia, already cites the Adriatic Line among eligible projects saying it will allow the transport of additional gas from Azerbaijan, Africa and the EastMed region to northern Europe.
Italy now needs to get a final approval in Brussels.
"Since the infrastructure will also be hydrogen ready, I am confident the investment will be funded by the European Union," Venier said. He did not say how much funding Snam would seek.
The new infrastructure will increase the capacity of Italy's grid by 10 billion cubic metres (bcm) per year once completed in 2027, opening up the possibility for Italy to increase its gas exports.
Last year Italy consumed 70 bcm of gas with Algeria, Azerbaijan among its main suppliers. ($1 = 0.9161 euros) (Reporting by Francesca Landini Editing by Keith Weir)