Spain offers itself as a gas platform in exchange for not applying cuts

Spain offers itself as a great platform to transport gas to the rest of Europe in exchange for not having to cut consumption as the European Commission intends.

Thomas Osborne
Thomas Osborne
21 July 2022 Thursday 22:00
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Spain offers itself as a gas platform in exchange for not applying cuts

Spain offers itself as a great platform to transport gas to the rest of Europe in exchange for not having to cut consumption as the European Commission intends. The Spanish position remains inflexible, a resounding no to this 15% reduction in gas consumption, instead defending taking advantage of its strategic position to transfer gas of non-Russian origin to the rest of Europe.

The approach sounds good, but it has some obstacles. If Brussels' objective is to reduce this 15%, that is, 45 bcm (one bcm is equivalent to one billion cubic meters), in eight months, Spain has the capacity to channel 5.6 bcm to Europe in this period. Currently, 20% of the gas that enters Spain ends up destined for other European countries. 10% to France through the two gas pipelines that cross the Pyrenees, 8% by exporting electricity to France and Portugal (electricity from combined cycles, therefore, using gas), and 2% to Italy through through ships. This 20% can be maximized, according to the Ministry for the Ecological Transition.

In the historical average of recent years, Spain has practically not exported gas to its neighbors, but in recent months this export has increased considerably, even more so since the entry into force of the gas cap that allows electricity to be obtained at a better price. However, in the month of May, the maximum of Spanish export capacity was already reached, so basically, the Spanish Government offers to maintain the current situation, which it describes as an element of solidarity.

The Government criticizes the position of the European Commission because it intends to act exclusively on demand, uniformly cutting it by 15% in each country, regardless of each particular situation. Instead, Spain wants to act on the supply side, helping to supply additional gas from other sources. Yesterday, the Third Vice President and Minister of Ecological Transformation, Teresa Ribera, was once again forceful. "We are not going to introduce an obligation in a law that requires lowering the thermostat at home," Ribera told the Ser chain, adding that she will not accept cutting gas consumption for industry either. "We cannot assume a sacrifice on which we have not even been asked for a prior opinion." This is another of the points of Spanish irritation: President Von der Leyen did not give them any clue as to where the proposal was going, much less the mandatory nature of the cut.

Now, Spain is looking for allies to block the proposal when it is discussed in the Council of Ministers on Tuesday. In principle, it has the support of Portugal and Greece, and ministry sources point out that France and Italy are not satisfied either. On the other hand, these sources do not rule out that the Prime Minister, Pedro Sánchez, mobilizes.

On the other hand, the Spanish Gas Association, Sedigas, yesterday gave its support to the Government's opposition to the proposal, and is against proposing a general restriction of demand neither for households nor for industry.