The Portuguese government has chosen a group made up of French, German, and Portuguese companies to implement its proposed introduction of natural gas to the country.

Discussions with the group to draft a licensing agreement will begin shortly.

Members of the combine led by Gaz de France include Total, Ruhrgas AG, and three Portuguese companies: Gas de Portugal, Francisco Antonio Fernandes, and Quintas + Quintas.

The proposed plan calls for three major installations: a natural gas receiving and regasification terminal, a high pressure gas pipeline extending almost 400 kms between Setubal and Braga with feeders necessary to supply the network customers, and underground high pressure gas storage facilities designed chiefly to ensure a safety reserve.

LNG tankers will transport the gas, which at first is most likely to come from Algeria.

Estimated cost of the installations is 102 million contos ($700 million U.S.), including loans. Plans call for the European Community to participate in the financing.

In addition to building and operating the installations, the Gaz de France group is to supply and market LNG to regional gas distribution companies, electric utilities, and major industrial users.

In the long term, the total market is expected to reach 3.6 billion cu m/year, with about one half of the total burned to generate electricity, while one third will be consumed by industry.

By 2000, natural gas is expected to hold a 6% share of the energy market in Portugal, Gaz de France said.

Copyright 1991 Oil & Gas Journal. All Rights Reserved.

PORTUGAL TAKES ANOTHER STEP TOWARD LNG

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