Tag Archives: Oil & Gas Related Equipment and Services (TRBC level 3)

Snam Italia sets a target of 2040 carbon in the clean energy drive | Instant News


FILE PHOTO: Italian gas group Snam logo seen outside their office in Rome, Italy, 4 June 2020. REUTERS / Guglielmo Mangiapane

MILAN (Reuters) – The Italian gas group Snam aims to become carbon neutral by 2040 and will increase spending on preparing its grid for hydrogen and the transition to cleaner energy sources.

Europe’s biggest gas pipeline company said Wednesday that it would invest 7.4 billion euros through 2024, half of which would prepare its infrastructure to receive hydrogen.

It said the net zero-carbon target does not include emissions beyond its control, but works with suppliers to address the so-called Scope 3 emissions that are generated by the provision and use of its products.

He said his party aimed to reduce direct and indirect carbon emissions by 50% by 2030 from the previous target of 40%.

“Snam will be one of the first energy companies to achieve carbon neutrality by 2040 and make a broad contribution to system decarbonization through developing green gases and, in particular, hydrogen,” said Snam CEO Marco Alvera.

The company, which is also interested in getting involved in the water sector, said it aspires to fully transport decarbonized gas on its network by 2050 to make Italy a European hydrogen hub.

Snam, which derives most of its revenue from gas transportation in Italy, wants to expand the use of hydrogen in pipelines and has achieved a 10% hydrogen mix in a pilot study.

Net profit in the 2020-2024 period is expected to grow 2.5% per year while core income will increase by an average of 3.3%, the company said, emphasizing dividend growth of 5% per year until 2022.

Reporting by Stephen Jewkes; editing by Agnieszka Flak and Barbara Lewis

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Italy’s Saipem signs an agreement with Saudi Aramco for ground activities | Instant News


FILE PHOTO: A scene showing a branded oil tank at the Saudi Aramco oil facility in Abqaiq, Saudi Arabia 12 October 2019. REUTERS / Maxim Shemetov

MILAN (Reuters) – Italian energy services group Saipem SPMI.MI said on Wednesday it had signed a framework agreement with Saudi Aramco covering engineering and ground construction activities.

It said the agreement, which will last 12 years, is part of Saudi Aramco’s broader long-term plan to upgrade its facilities in Saudi Arabia’s Eastern Province.

The agreement requires efficiency activities at the existing facilities, Saipem said.

Reporting by Stephen Jewkes, editing by Giulia Segreti

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Italy drafts guidelines for a national hydrogen strategy, the document shows | Instant News


MILAN, Nov 16 (Reuters) – Italy has set guidelines for a national hydrogen strategy to help decarbonize the economy as it gradually phases out coal and increases production of renewable energy to meet long-term climate targets.

In a draft document called the National Hydrogen Strategy Preliminary Guide, seen by Reuters, the Ministry of Industry said it was targeting investment in the sector at around 10 billion euros ($ 12 billion) by 2030, with half of that coming from European funds and private investment. .

To help increase “green” hydrogen production, about 5 gigawatts of electrolysis capacity to extract gas from water will be introduced during the period, the document says.

Electrolysis can be a carbon-free process if the power used is generated from renewable energy. Hydrogen is now mostly produced from fossil fuels or other carbon emission processes, because electrolysis is too expensive because of the large power required.

By 2030, hydrogen could account for 2% of Italy’s final energy demand and help remove up to 8 million tonnes of CO2, the document said. As the scale of the industry goes up and costs fall, this could reach up to 20% by 2050, he said.

The document, when published, will form the basis of consultations before a final hydrogen strategy is approved, possibly early next year.

Brussels mapped out plans this year to promote hydrogen as it strives to achieve net zero emissions by 2050. France, Germany and Spain have set their own targets.

Hydrogen is currently too expensive to be widely used but as costs go down, governments around the world see it as a substitute for fossil fuels in areas where electrification is not an easy solution.

The ministry document, which says the plan could create more than 200,000 jobs and generate up to 27 billion euros in Italy’s gross domestic product, said hydrogen could be used in transportation, heavy industry and natural gas pipelines.

Italian gas group Snam has been experimenting with a 10% hydrogen mixture in part of its natural gas network, while power company Enel and energy company Eni both have hydrogen plans.

$ 1 = 0.8458 euros Reported by Stephen Jewkes; Edited by Edmund Blair

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REFILE-FACTBOX-How CDP country-backed lenders are increasing their role in Italy Inc. | Instant News


(Adds extra context on the role at Telecom Italia)

Nov 2 (Reuters) – What do the bids for Italy’s biggest highway operator have in common involving Macquarie and Blackstone and a hedge fund campaign for board seats in the country’s top telecommunications group? The answer is Cassa Depositi e Prestiti (CDP) which is featured in both.

The 170-year-old Italian state-backed lenders and investors, led by CEO Fabrizio Palermo, have played an increasingly active role at Italy Inc in recent years to keep strategic assets in national hands and reduce the economic damage caused by the coronavirus pandemic.

Currently, it has 35 billion euros ($ 40.8 billion) invested in funds and companies ranging from oil giant Eni to plasma derivative specialist Kedrion – a number set to increase in the coming months.

And what is most interesting is that the debt is not accounted for as part of a huge public debt pile in Italy.

Below is an overview of the most recent transactions brokered by CDP investing savings made by Italians through the Poste Italiane national post office network.

MOTORWAYS

A consortium led by the CDP involving investment funds Macquarie and Blackstone is in talks with Italian infrastructure group Atlantia to buy its 88% stake in highway unit Autostrade per l’Italia in a deal worth 9 billion euros. CDP can get 40% from the tender company.

If the CDP is successful, more than 3,000 km of roadways will return under effective state control, drawing a line under the fierce dispute between Atlantia and the government that has its roots in the collapse of the deadly Genoa bridge in 2018.

STOCK MARKET

In the coming months CDP will become a leading shareholder in French stock market operator Euronext and a major investor in the Milan stock exchange group, which manages the Italian stock market and government bond platform MTS.

With 7.3% of Euronext, CDP will own the same stake as its French counterpart Caisse des Depots.

CDP is working with Euronext and Italy’s biggest bank Intesa Sanpaolo to agree to buy Borsa Italiana from the London Stock Exchange in a 4.3 billion euro deal last month.

DIGITAL PAYMENTS

CDP is orchestrating a merger between Italy’s Nexi and smaller rival SIA to create a dominant domestic payments group. Nexi is now in exclusive talks to buy Nordic rival Net.

Prior to the potential deal with the Nets, CDP was expected to own a quarter of Nexi-SIA, making it the largest single investor, followed by private equity owners Nexi, Advent, Bain Capital and Clessidra. CDP has invested 240 million euros to get nearly 50% of SIA.

TELECOM AND BROADBAND

CDP has built a 10% stake in the former state telephony monopoly Telecom Italia, which is valued at 630 million euros at current market prices, to offset the influence of French media group Vivendi, which is the largest shareholder in a company it deems strategic.

In a bid to ease Vivendi’s grip on Italian telephone groups, the CDP sided with US activist fund Elliott at a major shareholder meeting to appoint a new board of directors in 2018.

CDP is interested in creating a unified national operator that combines the network assets of Telecom Italia with its smaller rival Open Fiber, a broadband network operator in which CDP is investing 360 million euros for a 50% stake.

Sovereign lenders will be leading shareholders in every champion of a new network designed to give businesses and homes a fast connection and close Italy’s digital divide. CDP will have the authority to examine strategic issues regarding new network operators.

CONSTRUCTION

Under ‘Project Italy’, CDP joined forces with construction company Webuild to organize a joint rescue of small rival Astaldi to create national power and revive the country’s ailing construction industry.

CDP guaranteed a 250 million euro capital increase in Webuild to acquire an 18.7% stake in the group. ($ 1 = 0.8583 euros) (Reporting by Francesca Landini, Stephen Jewkes, Elvira Pollina, Valentina Za Editing by Keith Weir)

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Brazil’s Petrobras posted solid margins, but a one-time fee hit the advantage | Instant News


RIO DE JANEIRO (Reuters) – Petrobras Brazil posted unexpected losses thanks to non-recurring fiscal costs, even as operating income was supported by a recovery in fuel sales and oil revenues.

FILE PHOTO: The logo of Brazil’s state-owned Petrobras oil company is seen at their headquarters in Rio de Janeiro, Brazil October 16, 2019. REUTERS / Sergio Moraes / File Photo

In Wednesday’s securities filing, Petroleo Brasileiro SA PETR4.SA, the official title of the state-owned oil company, recorded a third-quarter loss of 1.546 billion reais ($ 275 million). Income before interest, tax, depreciation and amortization (EBITDA), adjusted for one-time items, was 33.4 billion reais, above Refinitiv’s estimate of 29.7 billion reais.

Among the one-time charges the company highlighted were a 1.9 billion reais payment to two state governments to settle unpaid tax disputes, as well as a significant bond buyback program. The decline in the Brazilian real against the US dollar helped amplify some of the losses, the company added.

Petrobras said that, excluding one-time items, the company will post a net profit of 3.2 billion reais, beating Refinitiv’s estimate of 736 million reais.

Among the positives for the company is significant sales growth, especially gasoline and diesel. Net revenue was 70.7 billion reais in the quarter, up 39% from the previous period.

“The recovery in sales of diesel and gasoline is prominent,” the company said. “These products were severely affected by COVID-19 in the second quarter and the recovery is the strongest in our portfolio, both in terms of volume and price.”

Crude oil exports to China – which have skyrocketed in recent quarters as production increased as the worst pandemic passed – slowed to pre-pandemic levels. Meanwhile, exports to other markets such as the United States, Spain and Indonesia have grown significantly since the second quarter.

Even Chinese demand may have recovered later in the quarter.

Brazil jumped to become China’s third-largest crude supplier in September, import data showed on Sunday, as independent Chinese refiners scooped up cheap supplies of relatively high-quality South American exporter oil.

Petrobras said that average production costs fell from $ 7.90 per barrel of oil equivalent in the second quarter to $ 4.50 in the third, thanks in part to increased efficiency and partly due to real depreciation.

($ 1 = 5.62 reais)

Reporting by Gram Slattery and Sabrina Valle; Edited by Christian Plumb and Sam Holmes

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