EIB finances expansion of Gas Natural Fenosa’s distribution network with EUR 600 million loan
The European Investment Bank (EIB) has granted a EUR 600 million loan to Gas Natural Fenosa to finance the expansion of its gas networks in Spain up to 2018. This is the first instalment of a total loan of EUR 900 million approved by the EIB. The loan agreement was signed by EIB Vice-President Román Escolano and Gas Natural Fenosa’s CEO, Rafael Villaseca.
At the signing ceremony the EIB Vice-President said that “with this loan the European Investment Bank is helping to promote energy diversification and security, as the project will add capacity to the gas transmission system and improve the gas supply in Spain”.
The funds will serve to finance Gas Natural Fenosa’s investment programme over the period 2015-2018. This will involve the renewal, upgrading and expansion of natural gas transmission and distribution networks – including the construction of pipelines, distribution networks and liquefied natural gas plants – with the aim of increasing natural gas penetration in Spain, including in convergence regions.
The investments carried out by Gas Natural Fenosa will contribute to improving energy security and diversification and bring environmental benefits by replacing less clean and more expensive fuels with natural gas, reducing energy costs and CO2 emissions in households, businesses and industry.
This operation meets EIB and EU priorities in terms of not only fostering economic and social cohesion but also reducing greenhouse gas emissions and ensuring a diversified, competitive and secure energy supply, which is essential for the smooth functioning of the productive fabric.