Snam Inks Second CNG Partnership

Eni and the Italian gas transmission grid Snam signed a framework agreement May 25 to develop filling stations for natural gas vehicles (NGVs) in Italy.

The partnership aims at developing new compressed natural gas (CNG) and LNG pumps at Eni’s Italian network of filling stations.

At present two of Eni’s Italian filling stations offer LNG, which is used mainly in heavy trucks, and 180 offer CNG.

Snam has 32,000 km of pipelines and has dedicated a five-year budget of €150mn to roll-out up to 300 new CNG service stations by 2021. Italy though already has 1mn NGVs which consumed 1bn m³ in 2015, making it the largest European market.

Eni’s statement did not say explicitly what its target for new CNG filling stations would be. Another leading Italian motor fuel retailer API signed a letter of intent with Snam in December 2016 saying it aimed to develop 150 new filling stations to supply CNG within the API network.

Mark Smedley