PORTUGAL LNG PLANS ON TRACK

A group of European companies seeking to establish in Portugal a gas infrastructure based on imports of liquefied natural gas has appointed Manufacturers Hanover Trust Co. as financial advisers on the project.

Dec. 9, 1991

The $770 million project entails constructing an LNG receiving terminal at Setubal and 248 mile high pressure pipeline to Braga, plus distribution lines and storage facilities. The group, selected by the Portuguese government, consists of Gaz de France, Ruhrgas AG, Total, Gas de Portugal, the Portuguese government, and two private Portuguese companies. It expects the project to start up in 1995.

The group estimates Portuguese gas demand will grow to about 350 MMcfd, broken out as half for power generation, a third for the industrial sector, and the balance to residential users.