Germany, Spain And Portugal Support New Gas Pipeline

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Germany, Spain and Portugal are talking to the European Commission about building a gas pipeline from the Iberian Peninsula to France that would help relieve Europe's dependence on Russian oil and gas.

Germany's Chancellor Olaf Scholz is pushing for a gas link between southern and central Europe, via France, as the region faces its greatest energy crisis in decades following Russia's invasion of Ukraine and its subsequent throttling of gas supplies. Europe has traditionally relied on Russian imports for 40% of its needs but is actively seeking alternatives as it faces winter and the prospect of complete gas cut-offs in 2023. "I have been very active in talks with my two colleagues in Spain and Portugal, but also the French president and the president of the European Commission in advocating that we should take on such a project," Scholz told media, adding that a proper gas link is "conspicuously absent. It would make a massive contribution to relieving and easing the supply situation."

Spain has six liquefied natural gas (LNG) regasification terminals--including Europe's largest in Barcelona--and Portugal has one, accounting for one-third of Europe's LNG processing capacity. The countries receive LNG via pipeline from Algeria and Morocco alongside loads via ship from countries including Nigeria and the U.S. However, there are only two low-capacity connections to France, and the region is often referred to as an "energy island." A higher-capacity pipeline over the Pyrenees into France would change that, but France is not supportive of the plan. There was a partially constructed project in the region known as MidCat (Midi Catalonia) that was canceled in 2019 due to environmental pressures, lack of necessity and high costs. Around 80 kilometers (49.7 miles) of the pipeline was constructed on the Spanish side before cancellation. If completed, it would have a capacity of 7.5 billion cubic meters.

Spain's energy and environment minister Teresa Ribera said that a new section of pipeline from Spain into France could be constructed in less than a year and could boost Spain's capacity to export gas by 20-30%. Spanish Prime Minister Pedro Sanchez is very supportive of the plan and claimed: "Spain has a lot to contribute to help Europe reduce its energy dependence on Russia thanks to our immense regasification capacity." Portugal's Prime Minister António Costa said: "Germany can count 100% on Portugal's commitment to the building of a gas pipeline. "Today gas, tomorrow green hydrogen."

Last week, Industrial Info reported that Europe was on track to reach its gas storage targets before winter hits. Storage levels stood at 72%, slightly up on the five-year average. The European Union (EU) has a stated goal of reaching 85% of full storage capacity by November 1 to help ensure that the region has sufficient gas to cope with Russian gas shortages. For additional information, see August 15, 2022, article - Europe on Track to Fill Gas Storage Before Winter.

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