Delays seen in Spain's three new regas plants -CNE

MADRID, July 31 | Thu Jul 31, 2008 11:59am EDT

MADRID, July 31 (Reuters) - Spain's energy watchdog expects three new regasification plants to enter service between late 2011 and 2012, or up to 29 months later than originally planned. Spain currently has six regas plants, which are needed to decompress and transmit liquefied natural gas (LNG), of which the country is a major importer.

In its latest twice-yearly review of infrastructure projects released late on Wednesday, the National Energy Commission (CNE) said Enagas's (ENAG.MC) Musel plant would be delayed until December 2011, as would another plant in Tenerife.

Enagas officials were not immediately available for comment.

A third plant in Gran Canaria was not due for completion until June 2012.

Spain's government has promoted regas plants as a means of diversifying supply for a country that depends almost entirely on imports for its growing demand for natural gas.

Last year Spain imported about 65 percent of its gas in liquid form. Algeria is the main supplier and provides some 35 percent of the country's gas needs.

The CNE also reported that plans to install three gas-fired power stations in Spain with a total capacity of 1,200 megawatts have been shelved.

Out of 14 plants due on line in 2007, one 400 MW plant -- for EDP (EDP.LS)-owned Cantabrico -- had been axed.

Of six plants originally due to enter production in 2008, the CNE logged the cancellation of two 400-MW units sponsored by Global 3 Energia.

About 35 percent of Spain's electricity is generated by combined-cycle gas generators.

Notwithstanding infrastructure problems, in a separate report the regulator tallied new summer records for overall gas demand and for gas used in electricity generation.

On June 20, demand for gas hit 1,403 gigawatt-hours (about 134 million cubic metres), up from the previous record set on July 19 last year.

On the same date, 754 GWh of gas were supplied to generate electricity, up 2 percent from the previous maximum.

The figures are in line with gas industry forecasts for consumption to rise this year by 10 percent to about 43 billion cubic metres. (Reporting by Martin Roberts, editing by Anthony Barker)

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