Home Business Italgas pledges to invest $9 bln in gas grids by 2028

Italgas pledges to invest $9 bln in gas grids by 2028

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MILAN — Italgas pledged to invest 8.6 billion euros ($9 billion) to 2028 to complete the upgrade of its domestic Italian network and to modernize the gas grid in Greece, Italy’s biggest gas distributor said on Wednesday.

In its business plan, the group also 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.

Italgas, which last year reached a deal to buy the state-controlled Greek gas distributor DEPA Infrastructure, expects to finalize the acquisition in the coming months.

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Russia’s invasion of Ukraine has sent European countries scrambling to reduce their dependence on Russian gas.

In its multi-year strategy for energy RePowerEU, 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.

To help Italy to boost 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,” CEO Paolo Gallo said in a statement.

The business plan to 2028 earmarks 4.5 billion euro investments for Italy and 1.8 billion for Greece by 2028.

In its previous business plan, Italgas had planned 7.9 billion euros investments.

The group also said that it would cut greenhouse gas emissions Scope 1 and 2 by 34% and reduce energy consumption by 27% by 2028. It plans to reach net zero carbon emissions by 2050.

Italgas also said it could carry out selected M&A in the water sector. ($1 = 0.9560 euros) (Reporting by Francesca Landini, editing by Cristina Carlevaro and Keith Weir)

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