- Spain estimates pipeline’s completion will take 4-5 years
- Vitality minister: There are nonetheless divergences on timeline
- RBC analyst: Europe’s provide woes more likely to final till 2024 no less than
- Spain-Italy LNG delivery hyperlink being thought-about
MADRID, Oct 21 (Reuters) – The deliberate underwater pipeline connecting the ports of Barcelona and Marseille is unlikely to assist ease Europe’s power disaster within the quick time period, with Spain saying on Friday it may take no less than 4 to 5 years to grow to be absolutely operational.
The joint mission between Spain, Portugal and France, agreed on Thursday and dubbed BarMar, replaces the cross-Pyrenees MidCat pipeline that Spain had mentioned may very well be prepared by 2023 however was vetoed by France. BarMar will primarily be used to pump inexperienced hydrogen and different renewable gases into the European grid.
All three international locations mentioned the pipeline also needs to briefly enable for the transport of some pure fuel to assist alleviate Europe’s provide issues stemming from Russia’s invasion of Ukraine. Nonetheless, such reduction continues to be just a few years away.
“It is a mission that must be extraordinarily secure… Our estimate is that we would wish about 4 to 5 years,” Spain’s Vitality Minister Teresa Ribera informed reporters on Friday.
She added that the connections between Spain and France, in addition to between the entry level in Marseille and the hydrogen pipeline community in central Europe, are but to be accomplished.
A December deadline has been set for the businesses tasked with constructing the pipeline to current a extra detailed plan outlining its projected price and period, Ribera mentioned.
She was assured within the capability of Spanish fuel grid operator Enagas (ENAG.MC) to ship, she added, however the involvement of its French and Portuguese counterparts was additionally wanted.
“The truth that there was some speak of ‘no sooner than 2030’ signifies that there are nonetheless divergences on this challenge,” Ribera mentioned, referring to French media reviews on Friday.
Spain’s Prime Minister Pedro Sanchez was equally gentle on particulars of the brand new plan.
“What’s essential now’s to let technicians work, discover the funds, set ourselves duties, timelines and dates and naturally decide tips on how to share the prices of this essential funding,” he mentioned.
Fernando Garcia, a London-based utilities analyst at RBC Capital Markets, mentioned the BarMar route would “clearly” not repair Europe’s short-term provide woes.
“Europe is more likely to have fuel provide issues till no less than 2024 inclusive,” he mentioned, including: “Inexperienced hydrogen could also be cheaper to provide on the Iberian Peninsula than in Northern Europe, however costs, prices and infrastructure are nonetheless very a lot of their infancy.”
The BarMar pipeline would additionally substitute an underwater fuel hyperlink between Spain and Italy that was as soon as thought-about, Ribera informed Spanish TV station Antena 3 earlier on Friday.
As a substitute, Spain was now weighing a brand new maritime delivery hyperlink between Barcelona and the Italian port of Livorno to move liquefied pure fuel between the 2 international locations, she mentioned.
Reporting by David Latona; Extra reporting by Jesus Aguado and Inti Landauro; Modifying by Andrei Khalip and Susan Fenton
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