Portugal is moving ahead with plans to create a natural gas pipeline network.
Construction of the first phase of the program is to begin next year and be complete in about 5 years.
The first stage calls for laying a pipeline from Setubal, south of Lisbon, to the northern town of Braga near the Spanish border. It will be linked to the European network through the Spanish system.
The line will be the cornerstone of Portugal's drive to increase gas use. Bids for the job will be sought from domestic and foreign contractors in the next few weeks.
The project also calls for construction of a liquefied natural gas reception terminal at Setubal, a trunkline, and several distribution lines. It will require an $800 million investment.
The Portuguese government wants the system to go on stream in 1995. When fully operational, it will supply gas to about 2 million residential customers, 80,000-100,000 commercial users, and 4,000-5,000 industrial outlets in the western part of the country.
At last report, state owned Petrogal was considering Algeria and Norway as sources for LNG (OGJ, Oct. 8, p. 32).
Applications for distribution rights in three of the areas covered by the grid-Setubal, the central western region, and Porto-will be called later. The fourth distribution area, Lisbon, will be operated by Petroquimica e Gas de Portugal EP, the state company that operates the manufactured gas network in the area.
Under the government's plans, all the distribution companies will have open access to the transmission line that will transport gas as a common carrier.
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