Overview of the Iberian-Spanish and Central European Gas Pipeline Discussion
Last Thursday, discussions surfaced around completing a gas pipeline project intended to connect the Iberian Peninsula with Central Europe. The words were picked up as a signal toward a project with echoes of the mid-cat strategy linking Catalonia to the Pyrenees. Spain soon clarified that its portion could be built within eight months at an estimated cost of around 370 million euros, designed to transport renewable gases. Yet, France would want the pipeline to extend toward the center and north of Europe. A week later, statements from Emmanuel Macron’s government suggested the project was slow and expensive. Sources from the Ministry of Ecological Transition indicated many uncertainties about transporting hydrogen, while Spain maintained that there were no official communications and expressed hope for formal, high-level acknowledgment. These points came from the ministry’s briefings.
In response to questions about the possibility of a media-led push for a new pipeline, France and Spain chose to outline the Ministry of Ecological Transition’s stance: such infrastructure has a long operational horizon, with uptime and reliability that indicate it would not address the current energy crisis. An alternative was proposed: France could consider floating LNG terminals along its coastline, with Germany already announcing a similar terminal. This approach would require less upfront investment and offer faster implementation, enabling direct imports from Gulf states or the United States.
There is also a climate dimension to the debate, as Europe accelerates its transition to carbon neutrality by 2050. The discussion emphasizes that new gas pipelines should be evaluated through the lens of climate risk and the broader goal of phasing out fossil fuels by 2050. Christophe Bechu acknowledged ongoing discussions about possibly converting gas pipelines to support hydrogen transport, but highlighted significant uncertainties around production and consumption capacities for hydrogen. He noted that some essential equipment, particularly high-flow compressors, is not yet available to build a system fully compatible with hydrogen transport.
France’s ministry conceded that these elements must be the subject of dialogue among member states, balancing European solidarity with climate targets. Following the spread of this statement, Spanish government sources awaited a formal response from France at the highest level and, in line with the European Commission, discussed who should finance the project given changing circumstances. They stressed that the context has shifted dramatically since the original medium cat plan, with heightened emphasis on energy security and price dynamics. A high-level political debate is deemed essential as conditions evolve, and new resources are urged to support this conversation.
The medium cat project originated as a collaboration between Spanish gas operator Enagás and French partner Teréga, dating back to the early 2000s. The initial plan involved an investment around 3 billion euros to transport 7.5 bcm annually, with a bidirectional flow between France and Spain across roughly 1,250 kilometers (800 in France and 450 in Spain). The first phase would have included a 227-kilometer segment connecting the France-Spain border through Girona and the Pyrenees. However, the National Markets and Competition Commission in Spain and its French counterpart, CRE, overturned this first phase in 2019, and the European Commission followed with similar actions in the subsequent year. With limited market interest and high costs for interconnection capacity, the project’s momentum waned, leading to a reassessment in light of evolving European energy policy and market conditions.
In the event of concerns about a potential Russian gas disruption, Europe has revisited the idea of a mid-cat-like configuration, aiming to maintain capacity while expanding export opportunities from Spain. Projections suggested a possible increase to about 7,000 million cubic meters to be routed through two existing lines in the Basque Country and Navarra, with expectations for further growth this year. Spanish officials stressed that this should be treated as a political priority to assist neighboring central and northern European countries, while acknowledging the need for careful reflection on how new conditions alter the project scope and mutual aid expectations. The third vice-president and Minister of Ecological Transition highlighted that Germany’s demand for gas and France’s energy needs show how interconnected European energy policy has become, and that important discussions are expected in the coming months. The dialogue continues as policymakers assess the best path forward for North Atlantic energy collaboration and regional resilience.