MidCat Reassessment: Spain, France, and Europe’s Gas Interconnection Debate

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The renewal of interest in the energy sector has grown in recent months with voices from major industry groups, including the Catalan employers’ association Foment del Treball. The MidCat project to double the gas interconnection capacity between Spain and France has resurfaced in public debate. It was shelved previously due to costs and limited commercial appeal, even as analysts weighed the implications for Europe’s gas security amid the Ukraine crisis and the risk of Russia reducing supply. The current discussion centers on whether this infrastructure could contribute to Europe’s energy resilience, especially for Spain and its neighbors, and whether its timing aligns with Europe’s broader energy strategy.

MidCat originated as a joint effort by Spanish gas operator Enagás and the French counterpart Teréga in the early 2000s, with an initial investment plan around 3 billion euros. The goal was to transport up to 7.5 billion cubic meters of natural gas in each direction annually. Today, Spain and France are connected by two pipelines, the Larrau–Alcay and Irun–Biriatou, with a total daily capacity equal to about 7 billion cubic meters per year. The project footprint spans roughly 1,250 kilometers of pipeline, with about 800 kilometers in France and 450 kilometers in Spain.

The first stage, known as STEP rails, comprised a 227 kilometer route crossing the Pyrenees and linking the France-Spain border to Girona. In 2019, both the National Markets and Competition Commission in Spain and its French regulator canceled the initial phase, and the European Union aligned with that decision the following year. The lack of investor enthusiasm, high infrastructure costs, and limited perceived need for expanded cross-border gas interconnection stymied the project at that time.

The Iberian Peninsula holds a strategic place in Europe’s gas landscape, containing a sizable share of natural gas capacity and regasification capacity across the continent. Spain operates six regasification plants, while Portugal hosts one of Europe’s regas facilities, aiding security of supply even when gas pipelines from France or Algeria are constrained. Yet the region’s LNG import capacity remains underutilized, and the 7,000 million cubic meters of potential interconnection capacity could have been boosted to around 15,000 million cubic meters if MidCat had been available today.

Despite potential, France’s cross-border connection has traditionally been modest and used mainly for energy imports. In 2021 the interconnector capacity operated well below its maximum, with Spain importing substantial volumes from France while exporting less. The broader European gas picture includes Nord Stream 1, which carried about 55,000 million cubic meters before disruptions, although the Nord Stream 2 project faced halting consequences after the crisis in Ukraine. Even with a MidCat revival, Spain’s ability to supply the entire continent would still face practical limits dependent on regional demand and alternative routes.

Spain’s leadership has weighed the broader purpose of any new pipeline. Teresa Ribera, the minister for Ecological Transition, recently signaled that new pipelines alone do not guarantee gas access, urging a broader view of infrastructure that also anticipates changes in energy markets over the coming years. The aim is to ensure that any project remains adaptable and serves as a meaningful link within a wider energy strategy rather than a standalone gas conduit.

Prime Minister Pedro Sánchez emphasized a key shift in thinking: the objective is to create interconnections that act as channels for energy, not merely pipelines for gas. The focus is on potential future use of green hydrogen and renewable energy vectors that could shift the continent toward decarbonization while maintaining reliable energy access.

Industry leaders have offered cautious assessments. The head of Redexis noted that physical interconnections may be hard to expand quickly but remain a necessary part of the energy mix. Nortegas leaders underscored the ongoing challenge of expanding interconnections in Spain, proposing that efforts to strengthen links with France, including the existing gas pipelines and regasification facilities, could help diversify supply and support Europe’s energy transition over time. The discussion remains practical: how to balance immediate gas needs with long-term goals of decarbonization and energy security across the region, while considering the economic and logistical realities of expanding cross-border gas networks.

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