EU Backs Portugal Gas Grid Extension

The EU has approved a €29mn loan by the European Investment Bank (EIB) to Sonorgas, a gas distribution network operator and supplier in northern Portugal. The European Commission said June 30 this will enable the company to expand its network to new areas not previously served by gas. The expansion would employ over 900 people during its implementation stage, plus 40 new permanent jobs, it added, without stating the total project cost.

Data from the International Energy Agency's recent country review of Portugal show that Sonorgas, at end-2016, had a 1.05% market share of Portugal's gas distribution sector, with just 14,038 customers and 318km of pipes, making it the 9th largest in the country.

The IEA said that gas distribution in Portugal is provided by six regional operators (Beiragas, Lisboagas, Lusitaniagas, Portgas/EDP Gas, Setgas and Tagusgas) and five local ones (Dianagas, Duriensegas, Medigas, Paxgas and Sonorgas). Market leaders are Lisboagas and Portgas/EDP Gas, respectively with 38.57% and 22.43% shares respectively. Leading utility Galp has stakes in nine of the above (all but Portgas/EDP Gas and Sonorgas). 

Mark Smedley