Spanish power group Endesa and Ras Laffan II from Qatar have signed a procurement gas contract for a total volume of one billion cubic meters (bcm), which represents five percent of the total gas consumption in Spain for 2002.
The ex ship contract is long term, with delivery in the liquefied natural gas (LNG) terminal and flexibility in destination and use. Gas will be mainly dedicated to the Iberian Peninsula and the Canary Islands.
The contract, which first deliveries are expected by 2005, follows the diversification sources policy already initiated with the first gas agreements signed in 1998, and ensures its gas procurement needs in the medium term.
The price formula takes into account several indexes adding diversification to Endesa's procurement portfolio as well as the possibility of hedging. In accordance with the usual standards attributable to the LNG longterm contracts, flexible operations to, both, buyer and supplier, is assured.
The entry capacity in the gas system of Spain has been already contracted by Endesa. At the same time, Endesa ensures its capacity generation plan until 2007 with 2,800 megawatts in new CCGTs in the Iberian Peninsula, as well as the projected new CCGT capacity for the extra Peninsular systems. Endesa’s total CCGT capacity currently amounts to 1,400 mega watts.
The company’s medium term target is to consolidate as the second gas operator in Spain, with a 13 percent market share in supply or 20 percent if the supply of CCGTs is included. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
