In 2015, the demand for gas in the EU rose by approximately 7% following a five-year slump. Domestic production continued to fall, thus increasing reliance on imports.
The European Union therefore made market integration (development of interconnections) and greater diversification of supply sources a top priority.
Enagás is heavily involved in this, driving the development of strategic EU projects such as MIDCAT, which will enable us to export to Europe the benefits of our Gas System's huge capacity to import LNG, and TAP, which will create a new supply route between Europe and the gas fields in Azerbaijan.
Enagás is now present in some of the most robust markets in Latin America, such as Peru, Mexico and Chile. Despite the economic slowdown seen in Latin America as a whole, these countries maintain good macroeconomic growth prospects and they are expected to increase their use of natural gas, leading to the development of new gas infrastructures. This will mean new short-term growth and consolidation opportunities for Enagás.
Expected GDP growth rate in 2016 (%)
In the case of Peru, the 2025 National Energy Plan envisages a 35% contribution by gas to the final energy mix (currently 13%).
Enagás has positioned itself as the leading gas infrastructure operator in the country, being involved in the two main gas transmission infrastructures: Transportadora de Gas del Perú (TGP), which carries gas and liquids from the Camisea production fields to the country's main consumption centres, as well as to Peru's LNG export plant; and Gasoducto Sur Peruano (GSP), an infrastructure under construction that will carry natural gas to the south of the country and which is, in terms of investment volume, one of the largest infrastructures currently being developed in Latin America.
Mexico has launched its new five-year plan (2015 – 2019) which includes an estimated $10bn investment into gas transmission infrastructures. Enagás is already present in the country through its shares in the Altamira (TLA) regasification plant, the Morelos pipeline and the Soto la Marina compressor station (now operational).
In Chile, the new Energy Agenda was passed in mid- 2014. It establishes promoting the use of LNG in power generation as a top priority, along with industrial and residential use. Actions to be promoted include maximising the use of the capacity of existing terminals and expanding the capacity of the Quintero LNG regasification terminal, where Enagás is present.
Over the coming years, the global LNG market will see a heavy increase in capacity thanks to the arrival of new liquefaction projects that will increase the availability of this fuel at competitive prices in all catchment areas.
This market reveals emerging trends whereby business models evolve towards approaches based on greater flexibility, relying on the availability of smaller scale, modular solutions such as floating technologies or small scale terminals.
At the same time, growing environmental demands in sea transport segment give LNG a huge potential for development in this segment.
In this context, the role of midstream infrastructure developers and operators is key to facilitate the entry of LNG in economies that need to import natural gas.
Enagás, as an operator with over 45 years' experience, is a world leader in the field of LNG and is well positioned to leverage this market's opportunities for growth.
Liquefaction capacity under construction (2015-2023)