Snam is proceeding with its growth strategy in China. Almost two months after the mission that brought CEO Marco Alverà to Beijing, the main European gas utility has signed a Memorandum of Understanding with Beijing Gas, the largest distributor and supplier of natural gas in China.
The agreement was signed by Alverà and the president of Beijing Gas Li Yalan on the sidelines of the World Council of the International Gas Union (IGU) in Venice. The objective of the agreement is to develop new projects on the Chinese mainland, particularly in biomethane and natural gas storage.
“This initiative – commented Alverà – paves the way for a collaboration between Snam and Beijing Gas in the development of new renewable energy sources and storage infrastructures. We are interested in developing projects in China, a country whose gas demand will triple between now and 2040, contributing to a more sustainable energy mix".
At the moment the agreement is nothing more than a MoU and therefore does not yet have a concrete application. But this is no less important considering that Beijing Gas operates in the Beijing metropolitan area, with 22 km of gas pipelines and 6 million customers. It is precisely the position of the company, which serves the capital, that gives it significant strategic importance. Furthermore, entering the Chinese market is still very complicated and impossible in strategic services without an agreement with the government or subsidiary companies. In this way, Snam manages to set foot in the world's second largest economy, trying to identify growth opportunities.
