Enagas to buy share of Canary LNG terminal operator

Enagas has agreed to buy Regional Canaria de Energias SL from Canary Islands industrial shareholders in a transaction that gives the Spanish natural gas pipeline operator 41.94% in Compania Transportista de Gas Canarias SA (Gascan).

Gascan was incorporated for the purpose of building two LNG regasification plants: one on Tenerife and the other on Gran Canaria. The acquisition is subject to administrative and antitrust review, according to Enagas.

Upon completion, Gascan's shareholder base will consist of Enagas; Endesa, 47.18%; and Sodecan, a public company owned by the Canary government, 10.88%.

The regasification plant on Tenerife will be at Puerto de Granadilla and the plant on Gran Canaria will be built at Puerto de Arinaga. Each terminal will have a 150,000 cu m LNG storage tank, a sendout capacity of 150,000 cu m/hr, and a dock to receive LNG carriers with capacity of up to 145,000 cu m. The Tenerife project, which Enagas says is currently more advanced, has already obtained an environmental impact statement.

Acquisition of a stake in Gascan by Enagas represents a significant boost for both projects, said the announcement.

“The regasification plants will allow the Canary Islands to diversify their energy sources and reduce their current dependency on oil, which will translate into greater supply security. These infrastructures will also contribute to reducing pollutant gas and greenhouse gas emissions.”

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