Puerto de la Luz LNG Terminal

From Global Energy Monitor
This article is part of the Global Fossil Infrastructure Tracker, a project of Global Energy Monitor.
Sub-articles:

Puerto de la Luz LNG Terminal is a proposed LNG terminal in Spain's Canary Islands.

Location

The terminal's proposed location is at Puerto de la Luz in Las Palmas, the capital city of Gran Canaria Island.

Loading map...

Project Details

  • Parent: Totisa Holdings[1]
  • Location: Puerto de la Luz, Gran Canaria, Las Palmas, Spain
  • Coordinates: 28.139483, -15.423414 (approximate)
  • Capacity:
  • Status: Proposed
  • Type: Import
  • Start Year: 2023[2]

Note: mtpa = million tonnes per year; bcfd = billion cubic feet per day; bcm/y = billion cubic meters per year

Background

In July 2018, Totisa Holdings, a newcomer to Spain's energy market, approached the Port Authority of Las Palmas with a proposal for an LNG terminal at Puerto de la Luz in Las Palmas' port area. The proposed terminal complex would include LNG storage tanks, a regasification plant, bunkering facilities, and a gas-fired power plant.

Spain's leading electric utility Endesa, the national gas distributor Enagás, and Canary Islands-based fuel distributor DISA all placed competing bids for the project, with the latter two submitting a joint bid.[3][4][5] Early reports indicated that gas from the terminal could eventually be supplied to the Barranco de Tirajana power station in Juan Grande, 50km to the south.[2]

In June 2019, the Port Authority voted unanimously to accept Totisa Holdings' bid for the €90 million project.[6] Following unsuccessful legal and procedural challenges from the unsuccessful bidders[7], the project appeared ready to move ahead as of December 2020.[1]

If constructed, the Puerto de la Luz Terminal would be the first LNG terminal in the Canary Islands, outpacing Endesa's long-proposed but not-yet-completed Tenerife LNG Terminal and Gran Canaria LNG Terminal.

Opposition

Environmentalists and politicians – including Spain's Secretary of Energy[8], the national Commissioner of Markets and Competition[9][10], and the president of Las Palmas' city council[11][12] – have long questioned the wisdom of building an LNG terminal in the Canary Islands, based on the terminal's uncertain economic viability and the availability of alternative renewable energy sources.

Opposition groups have cited the low utilization rates among Spain's LNG terminals to call into question the necessity of such extensive LNG infrastructure. According to Food and Water Europe, "Since 2008, all LNG terminals (except for Mugardos) have been expanded and the total regasification capacity has increased by 8%, despite a decline in gas demand...even though the utilisation rate of Spain’s LNG regasification capacity was at only ~23% on average between January 2012 and March 2019, same as the low EU average during the same time period! The need to have so much LNG regasification capacity is questionable and best illustrated with the El Musel LNG Terminal (7bcm/y and a 300,000m³ storage capacity) which was completed in 2012 and then directly put into 'hibernation', 'until demand picks up'. The terminal has not been used since then. Despite large underutilization, Spain was the 5th biggest LNG importer with the 5th biggest liquefaction capacities worldwide in 2018, and for both cases number 1 in Europe (followed by France). Since at least 2016, Spain repeatedly imported cargoes of fracked US gas through its LNG terminals."[13]

Articles and resources

References

  1. 1.0 1.1 "El Puerto de Las Palmas da luz verde a un proyecto que dará soporte eléctrico a la isla de Gran Canaria". El Diario. December 16, 2020.
  2. 2.0 2.1 "EL PUERTO DE LA LUZ TENDRÁ GAS". Espiral 21. November 23, 2017.
  3. Spain’s DISA, Enagás submit joint bid for LNG plant at Las Palmas port, Ports Europe, Sep. 4, 2018
  4. "Disa, Endesa y Enagas maniobran contra un competidor que pretende entrar en el negocio energético canario". El Diario. September 20, 2018.
  5. "Endesa y Enagás luchan por una regasificadora en Gran Canaria - elEconomista.es". El Economista. September 21, 2018.
  6. "Morales e Hidalgo votan a favor de la primera regasificadora de GC". Espiral 21. June 28, 2019.
  7. "Disa y Enagás recurren la adjudicación de la planta de gas del Puerto a Totisa". La Provincia - Diario de Las Palmas. October 9, 2019.
  8. "El proyecto de la regasificadora en Gran Canaria se tambalea". El Diario (in español). February 11, 2019.
  9. "La CNMC se opone a la construcción de la regasificadora de Granadilla en Tenerife". El Periodico de la Energía (in español). October 13, 2017.
  10. "CNMC no ve conveniente autorizar la regasificadora de Granadilla en Tenerife". La Vanguardia. October 13, 2017.
  11. "El Cabildo insiste en que el gas no «tiene ningún sentido» ahora". Canarias7. February 13, 2019.
  12. "Morales: Una planta regasificadora en Gran Canaria no tiene ningún sentido". Agencia Efe. February 12, 2019.
  13. Spain Food and Water Europe, accessed December 6, 2019

Related GEM.wiki articles

External resources

External articles