Pipelines, distribution networks, LNG plants … Gas Natural Fenosa (GNF) on one hand and on the other Redexis Gas are investing heavily to expand the penetration of natural gas in Spain thanks to two loans from the European Investment Bank (EIB). GNF will get funding of 900 million euros and Redexis 160 million.
The European Union has taken a positive stance towards expanding the natural gas network in Spain. At least this is what says the Commissioner for Climate Action and Energy, Miguel Arias Canete, who stressed that “the European Commission welcomes that the European Strategic Investment Fund prioritizes investments in energy infrastructure that are key to economic growth and development. The internal and external energy interconnections are a top priority of this Commission in order to complete the single energy market. “
Gas Natural Fenosa
From this perspective, Gas Natural Fenosa´s announcement on the signature of a 600 million euro loan with the European Investment Bank (EIB) makes sense. This amount represents the first tranche of an EIB loan of up to 900 million that the multinational will allocate to the development of natural gas networks in Spain until 2018.
The company plans to expand the natural gas distribution network to new areas of Spain through the construction of pipelines, distribution networks and liquefied natural gas plants (LNG). The aim is to increase natural gas penetration, still below 30%, and well below the rate of other European countries such as France (42%) or Italy (88%).
This new loan granted to the energy group demonstrates the soundness of Gas Natural Fenosa´s investment project that meets the standards of sustainability, quality and environment required by the Bank.
The company, through its various distribution companies, is the leading natural gas distribution company in Spain. It currently operates a pipeline network of around 50,000 km that serves 5.3 million supply points in some 1,150 municipalities in 10 regions.
For his part, Vice President of the European Investment Bank (EIB), Román Escolano and Redexis Gas CEO, Fernando Bergasa, have formalized in Zaragoza a loan worth 160 million euro under the European Fund for Strategic Investment (EFSI), the core of the Investment Plan for Europe.
EIB Vice-President noted his satisfaction “ to sign this agreement with Redexis Gas, the first that EIB signs with this company and one of the first projects funded under the framework of the European Fund for Strategic Investment. The project, which will facilitate access to natural gas to more homes and businesses, will have a strong impact on the so-called convergence regions and rural areas. “
Redexis Gas CEO, Fernando Bergasa, said that “the loan represents a boost to Redexis Gas ambitious investment plans and will be devoted mostly to the development of distribution networks in new municipalities, as well as in building new transport pipelines to vertebrate Spain’s energy future. Only in 2015, Redexis Gas has committed investments totaling 477 million euro. “
The loan will finance an investment project in natural gas distribution and transportation networks during the period 2015-2018, which will facilitate conditions for supply of natural gas in Spain. The loan will be used largely in the development of new distribution networks and the construction of new gas pipelines to supply natural gas to a larger number of citizens and businesses.
This loan therefore will contribute to the development of Redexis Gas ambitious investment plan, which includes the expansion of its gas network in optimum quality and sustainability conditions, expanding the network it currently operates which spreads over 8,500 kilometers in ten autonomous communities.