Regulated distribution infrastructure

Galp manages regulated infrastructures in Portugal through its associated company, Galp Gás Natural Distribuição.

Distribution networks

The distribution networks in Portugal are regulated and fall into three categories:

  • High pressure network - Owned by Redes Energéticas Nacional (REN), it typically transports large quantities of natural gas over longer distances.
  • Medium pressure network - Establishes the link between the high and low pressure networks.
  • Low pressure network - Owned by the distributors, it connects each customer to the medium pressure network.

 

Remuneration

The remuneration rules for this operation are established by the Energy Services Regulatory Agency (Reguladora dos Serviços Energéticos - ERSE).

Factors considered when calculating the remuneration rate include the average yield of the ten-year bonds issued by the Portuguese State.

Galp’s Participation

Galp, through its associated company, Galp Gás Natural Distribution (GGND), has a stake in nine natural gas distributors in Portugal, five of which operate under concession agreements with a duration of 40 years, whilst the remainder operate through licenses for a period of 20 years.

In 2017, through GGND, Galp operated a 12,890 km long distribution network. At the end of 2017, the regulated asset base was valued at approximately €1.0 bn.

Distributor GGND stake
Duriensegás 77.50%
Beiragás 46.19%
Lusitaniagás 75.05%
Lisboagás 77.50%
Setgás 77.45%
Dianagás 77.50%
Paxgás 77.50%
Medigás 77.50%
Tagusgás 32.03%

 

In 2016, Galp reduced its stake in GGND to 77.5%, ceasing to consolidate the company in the Group's accounts.

Learn more about GGND here.