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Snam signs deal with Enagas to study Spain-Italy gas pipeline
Global Banking & Finance Review®
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MILAN (Reuters) – Italian gas group Snam said on Thursday it had signed an agreement with Spain’s Enagas to look into the idea of building an offshore gas pipeline between the two countries.
MILAN (Reuters) – Italian gas group Snam said on Thursday it had signed an agreement with Spain’s Enagas to look into the idea of building an offshore gas pipeline between the two countries.
The move comes as Europe scrambles to diversify its supply mix and wean itself off Russian gas following Moscow’s invasion of Ukraine.
Spain has the largest regasification capacity in Europe but transporting the gas into Europe across the Pyrenees has been a problem because of bottlenecks.
“(Snam) is working to take the necessary initiatives to contribute to (energy) security and to support the diversification of energy supply in Italy,” its new Chief Executive Stefano Venier said when commenting on first-quarter results.
Europe’s biggest gas pipeline group said its core earnings in the first three months rose 5.2% to 588 million euros ($618 million), boosted in part by higher volumes of transported gas.
The group, which runs nearly all of Italy’s gas transport and storage business, said it expected gas demand in Italy this year to fall due in part to the increase in energy prices.
($1 = 0.9517 euros)
(Reporting by Stephen Jewkes; editing by Agnieszka Flak)
A gas pipeline is a system of pipes used to transport natural gas from production sites to consumers or storage facilities. They are crucial for energy distribution and often span long distances.
Regasification is the process of converting liquefied natural gas (LNG) back into its gaseous state. This is typically done at regasification terminals before the gas is distributed through pipelines.
Energy diversification refers to the strategy of using a variety of energy sources to reduce dependence on a single source, enhancing energy security and stability.
Core earnings are a company's profits derived from its primary business operations, excluding any income from non-operational activities or one-time events, providing a clearer picture of ongoing profitability.
Gas demand refers to the total amount of natural gas that consumers and industries require over a specific period. It is influenced by factors such as economic activity, weather, and energy prices.
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