(Adds details, background, shares)
MADRID May 30 Spanish gas distributor Enagas
(ENAG.MC) sees new investment totalling 2.2 to 3 billion euros
($3.41 billion to $4.64 billion) under the government's new
2008-16 infrastructure plan, the company said on Friday.
The spending, expected in the period 2013 to 2016 would come
on top of 5 billion euros in investments already included in the
company's 2007-2012 strategic plan, the company said.
The new projects include pipelines, expansion of
regasification plants in Huelva and El Musel and underground
Gas demand should grow by 5 percent a year until 2016,
Peak demand, which the company said is used to determine the
need for new infrastructure, is expected to rise by 80 percent
over the period, compared with the latest record demand day last
Enagas said the rise in demand would would be met by new
supply from the Medgaz pipline from Algeria which is expected to
come online in 2009 coupled with the start of the El Musel plant
Earlier, Spain announced a boost to investment in its
electricity and gas distribution networks to 19 billion euros
($29.4 billion) from a previous 18 billion over the period to
Of this amount, 10 billion euros will be spent on the gas
distribution network with the balance going to the power grid,
the Industry Ministry said.
Enagas said it viewed the Government's plan positively,
saying it would ensure future gas supplies for domestic and
industrial users and for the generation of electricity.
Both Enagas and Red Electrica have their returns set by the
government. In February, it set an average return of 7.71
percent for installations entering operation after Jan. 1 this
By 1425 GMT, Enagas shares were 0.5 percent lower at 20.30
euros compared to a 0.6 percent gain in the Ibex 35 index
(Reporting by Jason Webb and Joe Ortiz; Editing by Andrew Hay
and Quentin Bryar)