Sourcing of natural gas
The natural gas enters the Portuguese market through Spain by the international pipelines that connect Tarifa to Córdoba (Gasoducto Al Andalus) and Córdoba to Campo Maior (Gasoducto Extremadura) or through the Sines LNG regasification terminal.
The international pipelines that connect Portugal to Spain transports the natural gas acquired to Sonatrach, in Algeria, which enters Spain through the Europe-Maghreb gas pipeline. This pipeline connects the natural gas fields of Hrassi R’Mel in Algeria to the natural gas transportation network of Spain. The Sines LNG regasification terminal receives tank ships mainly acquired to NLNG in Nigeria.
Transportation and distribution of natural gas
The regulated distribution networks in Portugal are organised in three categories: high pressure, medium pressure and low pressure. Tariffs for network use are determined by the regulator.
- The high-pressure network is held by Redes Energéticas Nacionais and is typically used to transport large amounts of natural gas through long distances.
- The medium-pressure network connects the high-pressure network to the low-pressure network. It is the backbone that conducts the low-pressure network.
- The low-pressure network is held by distribution companies and connects each customer to the medium-pressure network.
Galp participates in nine natural gas distributors in Portugal, five of which operate under concession contracts and four which operate under licences.
Sales of natural gas in Portugal
The sales of natural gas in Portugal are organised in three large segments: the electrical segment, the industrial segment, which includes several industries such as ceramic, textiles, the food industry and the glass industry, and natural gas marketing companies that supply customers with lower consumption levels, such as residential customers and small enterprises.