COMPANY PROFILE
2014
Enagas
(+34) 902 443 700 | www.enagas.es
Spain is stepping on the gas Editorial: Colin Chinery
Spanish energy leader Enagas is a major player in the natural gas field, managing the nation’s grid and operating LNG reception, regasification and - an increasingly important factor – Spain’s gas storage facilities. And its expertise is winning new partners and major global contracts, as Total World Energy discovers.
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Spain, Europe’s fifth largest energy user, imports almost all the gas it consumes. And with storage capacity severely limited, new storage facilities are needed, a priority vigorously pursued by national energy leader Enagas. Owner and operator of the national gas grid, Enagas is the Technical Manager of the Spanish gas system and the main carrier of natural gas in Spain, with a network of nearly 10,000 km of highpressure gas pipelines, connecting with France, Portugal and Morocco. The Madrid-headquartered firm also owns and operates three liquefied natural gas regasification terminals, at Huelva, Barcelona and Cartagena, and storage is another key major operational area.
enagas Import dependency - the majority of Spanish gas imports are from Algeria, Nigeria and Qatar – has led Spain to build a total storage capacity of 4,531 mcm, more than 10 per cent of its total gas consumption.
HIGH VOLUME STORAGE A ‘MUST’ And to adjust supply to demand, particularly at peak consumption periods, large high volume storage capabilities are essential. Worldwide there are 627 underground natural gas storage facilities – the first dating from 1915 including one under Berlin’s city centre. And Enagas is constantly investigating all possibilities for further underground natural gas storage in Spain. Gas, in these cases, is stored underground taking advantage of old deposits, or alternatively injected in deep water stratum or cavities generated in salt formations. Enagas manages two underground stores; at Serrablo, and Gaviota - both old natural gas fields which have been depleted - and Yela, the most recent
underground storage site, a saline fossil aquifer 2,300 metres below the earth’s surface. Located in Brihuega
“We boast over 40 years’ experience managing the highly complex Spanish gas system and are global experts in regasification” (Guadalajara), it became operational in the last quarter of 2012. The underground storage of Serrablo in the province of Huesca, between
Jaca and Sabiñánigo, was the first field of gas storage in Spain in early 1989. Gaviota is located in the waters off the coast of Biscay. Here the storage facility is in a depleted gas ¬field covering a surface area of 64 km2 and 2,150 metres deep, and accessed from a platform anchored to the seabed with 20 pylons and connected by a gas pipeline to an onshore processing plant A current project - ALGA 1600 - aims to expand Gaviota’s useful gas capacity to 1,600 m3; doubling its current volume To achieve this, and boost the nominal natural gas extraction and injection flows, the project involves the construction of new facilities and a number of modifications to existing installations. A new 20” undersea gas pipeline will be laid for natural gas extraction and injection, and four new wells drilled. The existing onshore gas processing and compression system will be expanded, while the Bermeo-Lemona gas pipeline will be duplicated. With a budget of €700 million, the Gaviota expansion project will lead to the creation of new jobs and revitalise
Sayaton, Guadalajara, Spain
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the local economy.
KEY INFRASTRUCTURE Yela’s strategic location in the centre of Spain makes it a key piece of infrastructure for meeting peak demand periods. Made of Upper Cretaceous fractured dolomites, the porosity and permeability of the aquifer contained within sealed rock allows gas to be stored inside. In summer, compressed gas in injected through the wells and in winter extracted. Water refills the pores in the aquifer, the gas is then treated and injected into the grid. Natural gas is stored at a depth of 1,000 metres in a saline aquifer - geological formations consisting of water permeable rocks that are saturated with salt water – or exhausted gas or oil fields.
Designed and developed to the highest standards of safety and environmental protection, the Yela facility will play a key role in the gas system, balancing differences in consumption between summer and winter, retaining a cushion of strategic reserves, and helping to guarantee natural gas supplies. It will make Brihuega a benchmark among energy centres, while boosting the economy of the area both directly and indirectly. And with its composition and efficiency, making natural gas the least contaminating of fossil fuels, Yela is a sustainable mode. With over 40 years’ experience and a staff of 1,150, Enagas is an international leader in the construction, operation and maintenance of regasification terminals, with an operation reaching from Europe to South America.
As part of its commitment to safeguard supply to the Spanish gas system, Enagas, though its shareholding in Gascan, is involved in the development of two new gasification plants in the Canary Islands; one on Gran Canaria and the other on Tenerife. These terminals will boost the supply security to the islands while helping to cut CO2 emissions. The company’s portfolio is extensive, and includes the offloading of LNG from ships to regasification terminals, carbon dioxide, hydrogen and biogas tank loading, laboratory certification and other infrastructure services. Spain, with the most regasification plants in Europe, is benefiting from one of the most diversified natural gas supplies in the world. And with demand rising, the unload volumes from large tankers originating from Trinidad and
PAST, PRESENT AND FUTURE. INTECSA-INARSA AND ENAGAS, GROWING TOGETHER INTECSA-INARSA began working with ENAGAS back in the 80s when natural gas network construction started to expand throughout Spain. At this time, INTECSA-INARSA was developing engineering for much of the gas pipeline network in Spain. In the 90s, INTECSA-INARSA and ENAGAS continued to work together, expanding the gas pipeline network and building the wider diameter gas pipeline in Spain. Engineering work then began on the first Compression Station which, over time, would become INTECSA-INARSA and ENAGAS’s main joint contract. At the start of the 21st century, INTECSA-INARSA worked with ENAGAS on LNG plants, with the first EPC contract. Our company also has also participated in underground gas storage facilities in Serrablo (Huesca, Spain) and more recently, in underground storage in Yela (Guadalajara, Spain). This relationship has lasted over 30 years. INTECSA-INARSA has provided the engineering for over 70% of Compression Stations currently operating in the ENAGAS network. In addition, we are working on the only compression station ongoing nowadays in Spain. This is ENAGAS’s first station with electrical activation. We are also backing internationalisation and, along with ENAGAS, we are providing the engineering for the Compression Station in Soto la Marina in Mexico. Looking to the future, we hope to continue our international growth alongside ENAGAS involving both companies in joint growth and implantation strategies. INTECSA-INARSA would like to thank ENAGAS teams from yesterday, today and tomorrow for having worked and grown together.
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enagas
The satisfaction of a job well done since 1965 Providing oil & gas services all over the world Years of experience and leadership in midstream projects for the 21st century
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The Yela underground storage facility, already put into operation, is located in the municipal area of Brihuega in the province of Guadalajara. Its strategic location in the centre of Spain makes it a key piece of infrastructure for guaranteeing supply.
enagas Tobago, Nigeria, and the Gulf of Iran is set to increase. Enagas currently has three regasification plants operational, in Barcelona, - Europe’s first, opened in 1969 - Cartagena and Huelva, and completed the construction of a fourth, El Musel in Gijon.
EXPANSION IN THE PIPELINE Now it is looking for further expansion of its regasification capabilities, with the aim of reinforcing the structure of supplies in the Iberian Peninsula and increasing the diversity of gas origins. Every pathway to a low-carbon future will involve significant investment in new technology. But given the level of uncertainty regarding these issues, the Energy Networks Association points to the “significant value in retaining the option for a ‘high gas’ future. “The costs of maintaining the existing gas transmission and distribution networks,” says the ENA, “are relatively small in comparison to the other system costs associated with a low-carbon
“Enagas is exploring fresh opportunities in growing countries with stable political and regulatory frameworks, provided they satisfy the company’s strategic criteria, and which will benefit from Enagas’s wideranging knowhow”
transition.” For Enagas both maintenance and continuous expansion move in step with a close commitment to environmental and social responsibilities. Resolved to tackling climate change – a corporate social responsibility set out in its mission document Vision 2020 - Enagas has a multidisciplinary working group monitoring direct and indirect emissions from each of its facilities. Areas for improvement are identified and compliances continually reviewed with the object of reducing emissions And last month it was awarded UNEEN ISO 14064 certification of its carbon footprint, a further advance in the company’s drive to cut greenhouse gas emissions and ensuring transparency in its dealings with stakeholders. Enagas is the only Spanish company in the Euronext-Vigeo World 120 index, ranking the 120 most sustainable listed companies in the world - the third consecutive year it has recognised Enagas’s environmental, social and corporate governance activities.
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Vigeo has established itself as the leading European expert in the assessment of companies and organisations, analysing more than 330 sustainability indicators and evaluating over 2,500 listed companies from 175 countries. The company is maintaining its technological leadership in the LNG market with the help of acquisitions of re-gasification plants, recently acquired 40 per cent stake in the Quintero LNG re-gasification terminal in Chile. Enagas has also reached an agreement to sell 2.38 per cent of TgP to Canada Pension Plan Investment Board and acquire 30 per cent of Compañía Operadora de Gas del Amazonas (Coga). As a result of this deal, it will become a major shareholder in Peru’s main gas transmission company, and in Coga, an active operator in the country. Enagas PAGE 8
investment in all these transactions will total $481m. Enagas also co-owns TLA Altamira regasification plant in Mexico, and has entered into an agreement to acquire a stake in the GNL Quintero terminal in Chile. And this week Enagas was awarded the contract for the construction and maintenance of a 1,000km pipeline from the jungle to the coast of Peru. The 34 year concession – the biggest infrastructure investment in Peru’s history – will create 7,000 jobs during construction, strengthen the transport and natural gas supply systems, and stimulate the much anticipated industrialisation the south of the country.
EUROPEAN SECURITY – AND NEW OPPORTUNITIES “We boast over 40 years’ experience
managing the highly complex Spanish gas system and are global experts in regasification,” Enagas Chairman, Antonio Llardén told the recent Spain Economic Forum 2014, arranged by the Spain - U.S. Chamber of Commerce in New York. Noting that Spain has a very diversified natural gas supply thanks to its regasification plants that can receive liquefied natural gas from all over the world, he said “our strength in LNG and our direct connections with producer countries could help improve the security of supply for the rest of Europe.” “Enagas” said Llardén, “is exploring fresh opportunities in growing countries with stable political and regulatory frameworks, provided they satisfy the company’s strategic criteria, and which will benefit from Enagas’s wide-ranging know-how.”
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