Italgas Plans to Invest $4.7 Billion to Upgrade Gas Pipeline Network in Italy
(Reuters) — Italgas plans to invest $4.7 billion to 2028 to complete the upgrade of its domestic Italian network, which includes 74,000 km (46,000 miles) of regulated gas pipelines, the company said on Wednesday.
In its multiyear strategy for its RePowerEU proposal, the European Commission has indicated that renewable gases, biomethane and hydrogen, will have to replace about 50% of the amount of gas that the bloc imports from Russia.
In response to Russia's invasion of Ukraine, European countries are scrambling to reduce their dependence on Russian gas. So, to help Italy boost its use of new gases, Italgas aims to make its grid more flexible.
"The largest share of the investments is destined for the extension, digital transformation and repurposing of the distribution network in order to create ... the conditions for the widespread use of the new gases, such as biomethane, green hydrogen and synthetic methane," Gallo said.
In the six-year business plan, the company earmarked $4.7 billion in investments for Italy and roughly $1.9 billion Greece to modernize the country’s gas grid.
In its previous business plan, Italgas had earmarked 7.9 billion euros of capital expenditures.
Paolo Gallo, CEO of Italgas, also announced that he expects to complete the acquisition of Greece's DEPA Infrastructure in July.
The group, which last year reached a deal to buy the Greece's DEPA Infrastructure for roughly $766 million euros, said it would consolidate the Greek rival in the last four, five months of this year.
In its long-term strategy, the group said it expects sales this year to exceed 1.4 billion euros, up from 1.37 billion euros in 2021. It sees adjusted core earnings of 1-1.03 billion euros excluding the contribution of DEPA Infrastructure. The debt was expected to grow to 5.9 billion euros.
Italgas plans to reach net zero carbon emissions by 2050.
($1 = 0.9627 euros)
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