Sedigas, the gas industry association, on Tuesday underscored Spain’s need to unlock its potential and accelerate the adoption of renewable gases, with a focus on biomethane. Officials argue that this is a pressing route toward decarbonisation and energy independence, especially as Europe moves to diversify its gas sources.
The organization envisions a future energy network with Europe that is strategic, not merely regional. As Sedigas president Joan Batalla explained during the association’s annual assembly, the shift should be planned with medium- and long-term horizons, rather than being bound strictly to the current regional roadmap.
Batalla emphasized that this transition requires time—roughly two to three years—to strengthen the domestic gas market and ensure a reliable framework for investment and growth.
In this context, the Sedigas leadership highlighted the benefits of expanding biomethane and other renewable gases to meet European strategic goals. They noted that much of the necessary infrastructure already exists, unlike certain interconnections with the mainland, which remain to be designed, approved, and built.
Remarkably, Batalla suggested that a third of gas demand could be decarbonised tomorrow through biomethane, without disrupting existing systems or the home heating boilers that rely on them.
Spain is viewed as having a timely opportunity to become a European hub for renewable gases, creating economic prosperity if the right conditions are in place for operations and logistics across the continent.
Recoup real costs of electricity generation
Batalla opened with remarks about the volatile economic context that continues to affect economies and jeopardise post-pandemic recovery. He noted that while the situation has been exacerbated by Russia’s invasion of Ukraine, the energy market volatility runs deeper and was evident even before the current crisis.
Estimates suggest that natural gas prices could level out around 70–71 euros per megawatt-hour (MWh), remaining above 2020 and early 2021 levels, when prices hovered near 24 euros per MWh. To address these dynamics, Batalla called for both short-term actions and structural measures that safeguard supply security while reducing price volatility. He advocated for long-term natural gas contracts to stabilize markets.
Regarding the ceiling on gas-fired electricity generation in Spain and Portugal, Batalla urged prudence and encouraged awaiting the European Commission’s final decision before taking drastic steps. He also stressed the need for a mechanism that accurately reflects the true costs of electricity generation from natural gas.
He argued this is not about subsidies or aid, but about compensating real costs when Spain does not have its own natural gas resources. He also lamented Europe’s tax-cut response as insufficient and emphasized the necessity of imports to sustain supply.
Algeria, key partner
Sedigas’ data show that Spain’s total gas demand reached 378 terawatt hours (TWh) in 2021, a rise of 5 percent from the previous year, with pandemic-related disruptions already fading. On a longer horizon, the figure stands 9.2 percent above the decade’s average and is among the year’s second-highest levels since 2011, driven by stronger economic activity and lower winter temperatures.
In terms of origin, 42.7 percent of Spain’s gas imports came from Algeria, 14.4 percent from the United States, 11.4 percent from Nigeria, and 8.7 percent from Russia. Batalla described Algeria as a reliable energy partner, while acknowledging that the United States is increasing exports to Europe as a means of diversification in a broader strategy that includes Spain.
“Bottleneck” from the war
All speakers agreed that Spain’s gas system remains robust and capable of supplying all consumers. Secretary of State for Energy Sara Aagesen highlighted the system’s resilience, noting that current storage levels average around 66 percent—above the European average and similar to prior years, despite ongoing conflicts and market tensions.
The discussions also highlighted shifting gas flows, with a traditional north-south pattern from France toward Spain now shifting as market dynamics change. Arturo Gonzalo Aizpiri, CEO of Enagás, observed that Spain exports more gas to France than it imports via the Algerian pipeline, underscoring a structural bottleneck in connecting European gas markets. The commentary suggested that Europe’s gas security depends on reactivating and expanding interconnections to avoid overreliance on a single route or supplier, including Russia.
These insights reflect the broader aim of ensuring a diversified, resilient gas network across Europe, capable of supporting energy security even amid geopolitical disruptions. External market forces and regional interconnections are key factors shaping Spain’s ongoing discussions about gas policy and energy independence. (citation: Sedigas annual meeting proceedings)