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Agreement between Eurogas, ACS and Enagásfor the Castor underground natural gas

Today, Eurogas Corporation (Eurogas), the ACS Group and Enagás
have entered into an agreement that will significantly advance the Castor
Project for underground natural gas storage, located in the Castellón
By means of that agreement, ACS will increase its ownership in Escal UGS
S.L. (the Spanish company developing the project) from 5% to 66.67%.
Castor Limited Partnership (CLP), of which Eurogas is a 73.7% owner, will
own 33,33% in Escal UGS.
When the Castor underground gas storage starts its operations, ACS will sell
to Enagás half of of its 66,67% ownership, at which point CLP, ACS and
Enagás will each own 33.33% in Escal UGS.
ACS who until now was the turnkey contractor for the project, shall now be
responsible for the development and for the funding of the project until the
inclusion of Castor UG in the gas system. Total investment is now estimated
at over 1,200 million euros.
Until inclusion of the Castor UGS facility in the System, the board of Escal
will have nine directors, allocated as follows: ACS shall have six directors,
CLP two and Enagás one. After completion of the facilities and inclusion into
the gas System, each party will be allocated seats on a proportionate basis.
The Central Administration has in several occasions emphasized the
importance of underground gas storage facilities to count with the
necessary stocks to ensure and guarantee the supply of natural gas in
The Castor underground natural gas storage, with a start-up estimated to
take place at the end of 2010 will become the facility of this type with the
largest capacity in the Iberian peninsula and will have a strategic nature as
it could supply up to a third of the current daily demand of the system for
50 days.
The future storage will use an oil field in Amposta, located 22 km off-shore
from the Castellón coast
ACS Group is the largest infrastructure and services group in Spain and
third largest in the world, with revenues in excess of 20 billion euros. The
ACS Industrial Services Group is also among the leading international
groups in the creation, construction and operation of energy infrastructures,
both in the oil industry as well as in the gas and power sectors.
Enagas is Spain’s top natural gas transportation, regasification and storage
company, and also is the Technical Manager of the Gas System. Its facilities
include over 7,600 km. of high-pressure gas pipeline and three
regasification plants, which have a total storage capacity of 1.3 million cubic
meters of LNG. It also manages two underground gas storage facilities,
Gaviota and Serrablo, and has recently been awarded an concession for the
exploitation of the Yela onshore gas storage.
Eurogas Corporation is an independent oil and gas exploration company
listed on the TSX Venture Exchange under the symbol EUG and is engaged
in development of a major underground storage facility offshore the east
coast of Spain, and the exploration and development of oil and gas in
Tunisia's Gulf of Gabes.