Italian energy utility Snam plans to enter India gas market

By: |
August 19, 2020 7:15 AM

Over 31% of SNAM’s shares are held by holding company CDP Reti, which is a JV between Italy’s state-run Cassa Depositi e Prestiti and the State Grid Corporation of China

Snam wants to tap the relatively nascent market of gas for transportation and utilise its technology and equipment for CNG or liquefied-CNG refuelling stations.Snam wants to tap the relatively nascent market of gas for transportation and utilise its technology and equipment for CNG or liquefied-CNG refuelling stations.

Italian energy utility Snam plans to set its foot in India’s gas infrastructure space as the country intends to raise the share of gas in its energy basket.

The company’s CEO recently had a discussion with petroleum Dharmendra Pradhan regarding collaborations in the areas of liquefied natural gas (LNG), gas storage and hydrogen fuel.

Responding to FE’s queries, Snam said “the significant push towards cleaner energy shift and in particular towards gas is what makes India an interesting market,” adding that “we look forward to opening soon our office in India to enhance the dialogue and cooperation with Indian partners that we have developed over the past couple of years”.

Snam wants to tap the relatively nascent market of gas for transportation and utilise its technology and equipment for CNG or liquefied-CNG refuelling stations.

Over 31% of SNAM’s shares are held by holding company CDP Reti, which is a joint venture between Italy’s state-run Cassa Depositi e Prestiti (CDP) and the State Grid Corporation of China.

FE’s email to the ministry of petroleum and natural gas asking whether the government’s current anti-China stance will be a problem for Snam’s potential investments in the country remain unanswered.

The management of Snam is Italian and is proposed by CDP and the Italian government. “There is no influence by other shareholders on any of Snam investment decisions or strategy and therefore we don’t see any issue,” Snam told FE.

India aims to increase the share of natural gas in its energy mix to 15% by 2030 from the current level of about 6%. Demand for natural gas in the domestic market is largely dependent on the fertiliser (28%), power (23%), city gas distribution entities (16%), refinery (12%) and petchems (8%).

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1SBI to charge additional 0.35% interest on rejigged retail loans
2BSNL raises Rs 8,500 crore via local bonds
3Sinergia Labs part of a global project on low-cost ventilators