Spanish energy companies are switching to guaranteed gas consumption in our country. In the run-up to a winter marked by the possibility that Russia will eventually cut off all supplies of raw materials to European reserves, large corporations have been forced to revise their procurement plans, anticipating new moves in the war in Ukraine.

These are the cases Endes and from naturgia, which in recent weeks have signed important contracts for the supply of natural gas in the coming months. However, volatility in commodity markets is constant, and agreements are short-term.

Iberdrola, for its part, prefers not to take any steps, and sources in the company emphasize that “it is not planned to increase gas purchases in the winter period” and purchases will be increased “if necessary”.

CEO Pedro Sanchez, as well as companies in the energy sector, have provided Spain with guaranteed supplies of gas and oil throughout the winter thanks to the diversification of markets held by our reserves. Thanks to investments made over a decade ago, the energy system is the envy of all of Europe thanks to Spanish regasification and refineries.

Endesa buys methane carriers

LNG carriers have become pure gold in the energy ecosystem. The arrival of ships loaded with liquefied natural gas to our shores is constantly increasing. In fact, sources in the Ministry of Energy Transition indicate that most of the raw materials are used to send them to Portugal and, above all, to Francein which the production of nuclear energy was drastically reduced.

In this regard, Endesa explained in a statement to the National Commission on the Securities Market (CNMV) that it will put to a vote at an extraordinary meeting of shareholders the purchase of two methaner tankers for the transport of liquefied natural gas.

In particular, shareholders must approve the sale of a maximum of two terawatt-hours (TWh) of liquefied natural gas (LNG) between Enel Global Trading and Endesa Energía in 2023 for approximately 290 million euros, or the purchase of two shipments of liquefied natural gas. (LNG) methane tankers from Enel Generación Chile by 2024 by 121 mln.

Endesa also wants to see if she bolsters her financial strength by a total 5 billion euros. This is a twelve-month credit line provided by Enel Finance International (a company dependent on the group led by Enel) to Endesa in the amount of up to 3,000 million euros, and the issuance of a guarantee to Enel for the obligations of Endesa Generación in the amount of up to 2,000 million, valid until June 30 2023.

Naturgy reaches agreement with Algeria

Another important agreement signed in the interests of Spain is the agreement between Naturgy and Sonatrach. Spanish and Algerian companies have been negotiating price revisions for gas supplies from a pipeline connecting Europe with Asia for several months now.

Naturgy told its investors two weeks ago that it had agreed with the Algerian state gas company for supplies until the end of 2022, although prices are clearly higher than what they have signed to date, due to the “current context” in which the cost of acquiring raw materials has become up to 50% more expensive.

In addition, both Naturgy and Sonatrach continue to negotiate prices effective January 1, 2023 under contractual provisions. The current contracts between Naturgy and Sonatrach were signed over 20 years ago and are valid until 2030 for volume about 5 billion cubic meters ).).