Enagas, REN Plan New Pipeline Between Portugal and Spain

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Researched by Industrial Info Resources Latin America (Cordoba, Argentina)--Enagas S.A. (Madrid, Spain) and Redes Energeticas Nacionais SGPS S.A. (REN), through its subsidiary REN Gasoductos (Lisboa, Portugal), plan to install the third natural gas pipeline between Portugal and Spain.

The 286-kilometer (177-mile) pipeline will connect Mangualde (Portugal) with Zamora (Spain). About 200 kilometers will be in Portugal and 86 kilometers in Spain. The 26- to 30-inch-diameter pipeline project will be separately executed on each side of the border by REN and Enagas. The companies expect the pipeline will be in operation by the end of 2016.

Portugal will use the pipeline to help it meet the country's rising demand for natural gas. State-owned REN owns two pipeline connections with Spain; one goes through Valencia do Minho in the north of Portugal, and the other goes through Campo Maior in the Portugal's eastern region, where the product can be imported or exported.

REN has finished the pipeline project between Mangualde, Celórico and Guarda, completing a pipeline network in the center of Portugal. From Mangualde, REN expects to install the third pipeline that will cross northeast Portugal in the Tras-os-Montes region.

Although this project is of great interest to both countries, it depends on a subsidy by the European Union (EU) and the International Monetary Fund. The subsidy is expected to be made official by the end of 2014. The EU considers the installation of the pipeline to be important, since it will allow Portugal to access the Iberian Natural Gas Market (MIBGAS).

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