Spanish Gas Demand To Grow 11% In 2019: Enagas
Spanish gas grid operator Enagas is projecting a steep rise in gas demand this year, as Spain continues to scale back on coal-based power generation.
In an earnings report on July 30, the company noted that gas demand had risen by 9.4% yr/yr in the first half of the year. Consumption of gas in the power sector rose 65% in the period, it said, owing to reduced coal use and lower hydroelectric output.
Enagas also pointed to a 3.8% uptick in industrial consumption of gas to a record level.
The company expects total gas consumption to be 11% higher yr/yr in 2019. It reported record-breaking levels of gas demand in the power sector this month as a result of a heat wave that has led to increased use of air conditioning in Spain.
Despite these gains, Enagas’ profits were slightly down in the first half, at €216mn ($240.8mn) versus a year-earlier figure of €219.8mn.
In a conference call, CEO Antonio Llarden also warned that regulatory plans to slash the fixed rate of return on gas transport by 21.8% and its distribution by 17.8% jeopardised the stability of Spain’s energy system.
The proposals, which have been put forward for public consultation “endanger the stability of the energy system and we think they are disconnected from the reality of natural gas in the energy matrix,” Llarden stated, according to Reuters.