Rome/San Donato Milanese, 6 August 2018 - Eni and Snam, through its subsidiary Snam4Mobility, have signed a second contract implementing the framework agreement signed in May 2017, aimed at creating 20 new CNG (compressed natural gas) refuelling stations for vehicles in Italy, as part of both companies’ commitment to promoting sustainable mobility in the country.
The deal follows the contract signed a few months ago to create a group of 14 CNG stations, of which the first are due to open within the first quarter of 2019. Under the agreement, Snam will design, create and maintain 20 new CNG stations within Eni’s national distributor network. The investment for these activities is expected to be within the region of €10 million.
Natural gas is one of the best technologies available to help reduce emissions in mobility, with benefits in terms of air quality, as well as significant financial advantages for consumers. Mobility using natural gas is also becoming increasingly renewable through the gradual development of a biomethane supply chain that uses existing facilities.
The contract announced today is among many initiatives that Snam4Mobility is leading to promote sustainable mobility throughout Italy, to the benefit of both the environment and consumers. These initiatives are aimed at sector operators to support the development of natural gas and biomethane refuelling stations and their greater presence in the country’s various regions, which will also help improve the quality of supply to consumers.
Eni’s aim is to further strengthen its sustainable mobility offering with this initiative. Within Eni’s network of 4,400 stations, 3,500 supply Eni Diesel+, the premium diesel with a 15% renewable component made from vegetable oils (including used vegetable oils) at the Venice bio-refinery using proprietary technology, while around 1,000 stations supply LPG and methane (2 of which are LNG and 180 are CNG).
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.
For both companies the contract is an operation of lesser importance under Consob Regulation no. 17221 of 12 March 2010 and subsequent amendments ("Consob Regulation") and Procedures in this matter.
For Snam, the contract is among the exclusion cases provided for in art. 13 paragraph 3 letter c) of the Consob Regulation and its own Guideline, as an ordinary transaction and concluded at equivalent conditions to market or standard conditions.
Eni has applied its own Procedure, requiring an opinion from the Control and Risk Committee.