Enagás has developed and operated natural gas transmission pipelines in Spain since 1972. In 2000, the company was appointed technical manager of Spain’s gas system in accordance with the Royal Decree-Law 6/2000, and this year the company has been designated the operator of the transmission system for Spain’s high-pressure gas network under the Royal Decree-Law 6/2009.

Today, Enagás’ main activities include natural gas transportation, regasification and storage. The company transports gas through over 9,000 km of high-pressure gas pipeline and owns three regasification plants located at Barcelona, Cartagena and Huelva, as well as a 25 per cent interest in the Bahía de Bizkaia Gas Regasification Plant in Bilbao.

The company continues to develop its transmission pipeline network and natural gas assets in Spain, as well as promote the development of a pan-European pipeline network to ensure greater security of natural gas to Europe.

Recent pipeline projects

Enagás recently completed the 500 million euro ($US748 million) Peninsula– Baleares Pipeline project. The company says that the project is a “very complex and important” subsea pipeline system that connects the Iberian Peninsula with the Balearic Islands.

The project consists of three components: a 65 km pipeline between Montesa and Denia, the 267 km Denia – Ibiza – Mallorca subsea pipeline, and a compressor station located at Denia.

Enagás says that only eight pipelay vessels in the world specialise in this type of project, which included installing pipe at depths as deep as 997 m.

The company used the Castoro Sei vessel and an auxiliary fleet of six boats to complete the project. Approximately 22,500 pipes were used to construct the underwater section of the pipeline.

More than 500 people were employed to construct the pipeline, not including the 500 who worked on the Castoro Sei pipelay vessel.

"To date, this has been one of the most complex pipeline projects constructed as part of the Spanish Gas System," a company spokesperson says.

Work began on the project in December 2007 and was completed in September this year.

Enagás says that the pipeline system will bring important benefits to the Islands.

Besides transporting natural gas for distribution to residents, the project allows the supply of natural gas to power plants on the Islands, increasing the uptake of natural gas in the area.

“The pipeline gives Baleares energy security as it connects the Islands directly with the Spanish Gas System,” an Enagás spokesperson said.

Enagás also recently completed construction on the 292 km Almería – Chinchilla Pipeline, which was built to connect the Spanish Gas System with the Medgaz Pipeline currently under construction. The Medgaz Pipeline is a strategic project for Algeria, Spain, and the rest of Europe, supplying natural gas directly from Algeria, without requiring transit through third countries.

The 300 million euro ($US448.7 million) project was constructed in two sections – a 42 inch diameter, 122 km pipeline between Almería and Lorca, and a 42 inch diameter, 170 km pipeline between Lorca and Chinchilla.

The importance of gas storage and regasification facilities

Enagás has been investing in storage and regasification facilities since the company first began. This year, the Barcelona Regasification Plant is celebrating its 40th year of operations.

In September this year, Enagás signed a contract for the purchase of a 25 per cent interest in a regasification plant at Bilbao. The company also owns an underground natural gas storage facility at Serrablo.

The company is currently working on the construction of its fourth regasification plant at El Musel Port in Gijón in the north of Spain, and another underground gas storage at Yela, Guadalajara.

“Regasification plants give flexibility to the gas system...reinforcing the security of natural gas supply for Spain,” says a company spokesperson.

The company says that it will continue to construct regasification plants and underground storage facilities as necessary to increase storage capacity.

Future pipeline projects: international connections

Enagás says that construction of international pipeline connections is essential for a secure natural gas supply for Europe. Spain has one of the most diverse natural gas supply portfolios in the world, and last year received natural gas from ten different countries.

“International connections are strategic investments and essential to continue guaranteeing gas system security,” says an Enagás spokesperson.

There are currently two pipeline connections between France and Spain – the 2.7 billion cubic metre per annum (Bcm/a) Larrau Pipeline, and the 0.2 Bcm/a Irun Pipeline.

Enagás is part of the European Union organisation, the High Level Group of the South West Regional Energy Market. The working group aims to:

* Double the current capacity of the Larrau Pipeline from 2.7 Bcm/a to 5.2 Bcm/a via looping and additional compression. The project is expected to reach completion in 2013; * Increase the capacity of the Euskadour Pipeline from 0.1–2 Bcm/a by 2013; and, * Construct the 190 km MidCat Pipeline, which will run along the Mediterranean coast and have a capacity of 7.5 Bcm/a. The project is planned for completion in 2015.

“Having a pan-European gas network is essential to have a real European natural gas market. It is necessary to have a network connecting Europe from north to south, making it possible that in case of any supply crisis, natural gas can circulate through Europe in both directions,” an Enagás spokesperson said.