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 2018, through GGND, Galp operated a 13,015 km long distribution network. At the end of 2018, the regulated asset base was valued at approximately €1.1 bn.

Distributor	GGND stake
Duriensegás	77.50%
Beiragás	46.19%
Lusitaniagás	75.32%
Lisboagás	77.50%
Setgás	77.45%
Dianagás	77.50%
Paxgás	77.50%
Medigás	77.50%
Tagusgás	77.00%

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.

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