Spain's Gas Natural Outlines 2020 Strategy
Spanish gas utility Gas Natural Fenosa (GNF) said May 11 it expects to invest up to €14bn over the five-year 2016-20 period, including its first investment in floating LNG regasification, and to earn net profits in 2020 of over €1.8bn. The company has extensive interests in Latin America.
Net 1Q 2016 profits of €329mn were down 9% year-on-year on an adjusted basis, but down 19% from €404mn in 1Q 2015 if unadjusted.
At its strategy presentation in Barcelona, GNF said its main initiatives will focus on incorporating 3,500 MW of new global generating capacity (of which 2,500 MW renewables) both in Spain and internationally, and in expanding gas network investments in Chile, Mexico, Colombia and Spain.
During the next three years (2016-2018), the company will invest €8.1bn – of which €4.8bn on distribution, €1.8bn on new generation (almost all renewable) and €1.5bn on other business lines (mainly LNG). During 2019-20 it will invest €6bn, mostly on power plants and networks.
It aims to increase gas sales globally to 32bn m3/yr by 2018, from 27bn m3/yr today.
New procurement contracts that kick in from 2017 to 2021, including from Yamal and Sabine Pass, would improve the competitiveness and flexibility of its portfolio, GNF said, while its fleet of LNG carriers – owned and chartered - will almost double, and include a floating regasification unit (FSRU).
Investments in gas during 2016-18 will total €1.2bn and include four LNG carriers and the FSRU; they will rise by another €400mn in 2020.
In total, the company expects to invest €7.2bn in 2016-20 in gas and electricity networks – split 71% on gas and 29% on electricity, with Latin America getting 57% overall and Europe 43%. Across its business, it aims to add 3.6mn gas and electricity supply points.
GNF’s international power generation outside Spain (roughly 3,000 MW) is 25% owned by Kuwait Investment Authority’s subsidiary Wren House.
Mark Smedley