Enagas Profits Up, Spanish Demand Down

Spanish gas grid and LNG terminals operator Enagas said net profit of €317.4mn ($349mn) for the first nine months of 2016 rose by 1.5% year on year and that it is "on course to meet, and even exceed, the targets for the financial year."

Demand for gas from industries in Spain grew by 2.2% to 137.9 TWh of gas in January-September 2016, said Enagas on October 18. Gas demand from Spanish households and businesses also grew by 1.6%. But gas used by power generators in Spain fell by 15.4% to 37.8 TWh in Jan-Sep 2016, because of a 34% increase in hydro-electricity supply. That meant overall gas consumption was down by 1.7% at 226.5 TWh (21bn m³).

In September alone, gas-fired plants produced only 11% of total Spanish electricity production, owing to pressure from renewables and hydro generation.

Enagas said that profits were partly up because of recent acquisitions. It raised its stake in the Sagunto LNG terminal (Saggas) from 30% to 72.5%, and in the Quintero LNG terminal in Chile to 40.4% with a further increase pending. It also invested in pipeline projects such as the TransAdriatic Pipeline (TAP) and Gasoducto Sur Peruano.

It said total investments in the nine months to September 2016 were €598.4mn, of which €423.4mn internationally and €175mn in Spain. Of the latter, €106.6mn went on a bigger stake in Saggas.

Mark Smedley