Italgas and GRDF strengthen their partnership collaboration in the gas distribution sector

Paris, 28 June 2019 – Paolo Gallo, Italgas CEO and Edouard Sauvage, GRDF CEO, have signed today a Memorandum of Undestanding (Mou) to strengthen their partnership for the development of joint activities and the exchange of knowledge and experience in network management.

The agreement was signed at the opening of the 2nd France-Italy Energy Forum currently taking place at the Italian Embassy in France which brought together energy experts from both countries under the theme of carbon neutrality.

GRDF and Italgas, leaders respectively in France and Italy in the natural gas distribution sector and among the main players in Europe. Together provide the service to about 19 million consumers and manage over 270,000 kilometres of networks.

The cooperation between the two companies will be based on an intense activity of knowledge sharing of solutions and methods applied to the natural gas distribution sector with particular reference to the following areas:

  • Network development, digitisation and smart metering
  • Gas distribution network safety
  • Grid connection process and regulation
  • Development of biogas
  • Research & Development & Innovations, such Power-to-Gas technologies and Hydrogen injection into the grid
  • Development of natural/renewable gas sustainable mobility.

The sharing of experiences will be developed in many forms including the organization of bilateral consultations, technical workshops and learning experience missions, also using the Digital Factory Italgas, which will lead to the exchange of technical staff and middle managers in order to promote the direct learning of solutions and methods applied in the management of their distribution systems.

Paolo Gallo, Italgas CEO, said:

“This agreement paves the way for important growth prospects for our sector, which has a key role to play in the process of decarbonising the economy. Together we will encourage the development of technologies to transform the way we manage our networks, making our work more efficient and improving the quality and safety of the service we provide to our communities. Italgas and GRDF further strengthen their leadership in Europe, becoming more and more a point of reference for the sector and for the many countries that more recently began to develop gas infrastructures and that look to us to borrow cutting-edge technologies”.

 

Edouard Sauvage, GRDF CEO, underlined :

“The development of renewable gas is a real challenge for the energy transition. GRDF believes in the strength of partnerships. This agreement, signed between two gas distribution European leaders such as Italgas and GRDF will enable us to work towards innovative solutions, particularly in the field of renewable natural gas development, the circular economy and innovation.“

 

About Italgas

Italgas is the leading natural gas distribution operator in Italy and the third in Europe. With 4,000 employees, it manages a distribution network that covers approximately 70,000 km. Last year Italgas distributed round 9 billion cubic metres of gas to 7.6 million customers. Since November 2016, the Company is listed in the FTSE MIB index of the Italian stock exchange.

 

About GRDF

GRDF is the leading manager of natural gas distribution networks in France, GRDF distributes natural gas each day to more than 11 million customers to ensure that they have gas when they need it, regardless of their supplier. This convenient, affordable, comfortable, and modern source of energy enables people to heat their homes, cook, and get around. To provide this public service, GRDF builds, operates, and maintains the largest transmission network in Europe (200,715 km) and develops it in more than 9,500 municipalities while ensuring the safety of people and property, as well as high-quality distribution.

Italgas presents its 2019-2025 strategic plan

London, 12 June 2019 – Chief Executive Officer Paolo Gallo is today presenting to analysts and investors the Italgas Group’s Strategic Plan for the 2019-2025 period, which was approved yesterday by the Board of Directors chaired by Alberto Dell’Acqua.

The new Plan is structured along four guidelines: (i) innovation and digital transformation of the Company through the digitization of assets and processes and the development of digital skills for all employees, (ii) construction of the natural gas distribution network in Sardinia, (iii) new M&A operations and (iv) further organic growth, in terms of network extension and redelivery points served..

The Plan provides for a significant increase in investment programmes, equal to 500 million euros (+12.5%) compared to the previous one, to take the Company into the digital age, strengthening its leadership at European level, taking advantage of all development opportunities, and creating value for shareholders.

Highlights
  • Digitization of networks and business processes for a total investment of approximately 1 billion euros. Completion in 2020 of the installation plan for smart meters and 500 new digital networks.
  • 500 million euros to build the most technologically advanced natural gas distribution network in Sardinia (“methanization”).
  • over 2 billion euros for organic development, maintenance and network extensions.
  • Total investment plan of 4.5 billion euros (+ €500 million, +12.5%) with additional investment opportunities of approximately 1.9 billion euros for the acquisition of networks following sector tenders and related capex.
  • Current dividend policy confirmed.

 

 

Paolo Gallo, Italgas CEO, said:

“The main focus of the plan is the company’s digital transformation. Innovation, a growing trend in our sector, will create two categories of companies: frontier companies and followers. While today Italgas is a leader in history and size, tomorrow, thanks to investments in digital, it will become a ‘frontier company’, leader at European level. At the end of this long journey Italgas will have one of the most technologically advanced networks, with the application of advanced digital solutions.

The partnerships recently concluded with important global players – Picarro in the USA, State Grid Corporation in China and Eda Thess in Greece – provide the international recognition needed in demonstrating the quality of the path taken.

4.5 billion euros in investments, up 12.5% on the previous Plan, and an opportunity to invest a further 1.9 billion euros in sector tenders: these figures place Italgas among the main industrial companies in the country that create value for the communities in which they operate and for investors.

In light of the results achieved in recent years and the growth and development activities undertaken, this Plan revises all its main targets upward. As such it also confirms the current dividend policy, which has proved particularly profitable for our shareholders, evidenced by the latest financial statements, with a dividend up 12.5% on the previous year”.

Strategic Plan 2019 – 2025 Presentation

Italgas Top Management presents the Strategic Plan 2019-2025.

The event will take place on June 12th at 2:00 p.m. BST at The May Fair Hotel, Private Room 8 – Stratton St, Mayfair, London W1J 8LT, UK.

 Watch the presentation live

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