Gas Natural Fenosa receives EUR 150 million to expand its distribution network
The European Investment Bank (EIB) and Gas Natural Fenosa signed a EUR 150 million loan agreement for expanding the company’s distribution network. This is the second instalment of a total EUR 500 million loan. The agreement for the first EUR 350 million instalment was signed in 2011.
The schemes financed, which will be carried between 2011 and 2013, form part of Gas Natural Fenosa’s investment plan and consist of the expansion of the company’s gas network. They will be spread across 11 Spanish regions, with 59% located in convergence regions.
The schemes comprise: extension of the network; the laying of new pipelines to deliver gas from the national transmission system to the distribution networks; the installation of pressure reduction systems; and the enhancement of information systems.
The project will improve energy security and reliability by increasing the network’s capacity to meet peak demand and bring environmental benefits by replacing more polluting fuels with gas.
EIB finance is made available in accordance with well defined EU policies. This loan meets the EIB and EU priorities of financing projects in convergence regions and projects serving to secure and diversify the internal energy supply.
In 2011, the EIB provided finance totalling EUR 61 billion. In Spain, it signed loan agreements amounting to EUR 9 079 million, making the country the biggest recipient of EIB funds for the eighth year running.
As one of its top priorities, in 2011 the EIB devoted EUR 10 743 million in the European Union as a whole to fostering a secure, competitive and sustainable energy supply.
