Brussels, 27/03/2012 (Agence Europe) - On Monday 26 March, the European Investment Bank (EIB) and Gas Natural Fenosa signed a loan agreement for €150 million, which will be used to fund the extension of the company's distribution network. This operation constitutes the second tranche of a loan of €500 million, with the first tranche, worth €350 million, having been signed in 2011.
The equipment costs are to be incurred over the period 2011-2013, in the framework of Gas Natural Fenosa's investment programme and will help the company to extend its gas distribution networks. These investments will be spread out across 11 regions of Spain and 59% of them will be located in convergence regions. The investments planned under the loan will, amongst other things, fund the extension of the network, the laying of new pipelines to transport the gas from the national system to the distribution networks, the installation of pressure reduction systems and, lastly, the replacement and updating of IT systems.
The EIB stresses that by improving the capacity and solidity of the network in order to ensure supply during peak periods, this project will help to improve energy security and reliability. The Bank also notes that it will have a positive impact on the environment, as it will promote the replacement of higher-polluting fuels with gas. (OL/transl.fl)