Castor gas storage is mothballed and its owner gets paid

Automatic summary, not yet reviewed

1. The facilities of the Castor underground natural gas storage are mothballed: no gas may be injected or extracted during hibernation. The Council of Ministers may end this situation and decide between dismantling the facility or including it in a new concession.
2. The operating concession held by ESCAL UGS, S.L. is terminated. This does not prevent claiming liability from that company or its shareholders for defects in the facilities or for its management, during the following ten years.
3. Administration of the facilities is assigned to ENAGAS TRANSPORTE, S.A.U., which will handle maintenance, operability and, if ordered, dismantling. It is not liable for damage caused by force majeure or by the previous concession holder.
4. ESCAL UGS, S.L. is granted compensation of 1,350,729 thousand euros for its investment, to be paid in a single payment within 35 business days of the rule taking effect.
5. ENAGAS TRANSPORTE will hold a collection right against the gas system for 30 years, with priority over other system costs, to cover that payment plus financial compensation (fixed annual rate of 0.04267). The right may be assigned or pledged to third parties.
6. Maintenance and operability costs will also be paid through the gas system, after an audit of expenses and approval by ministerial order. ENAGAS TRANSPORTE must submit an estimated cost plan each year.

Who it affects

• ESCAL UGS, S.L.: Loses the Castor storage concession but receives compensation of 1,350,729 thousand euros and remains liable for its responsibilities.
• ENAGAS TRANSPORTE, S.A.U.: Takes over administration and maintenance of the mothballed facilities and is paid through the gas system.
• Natural gas users: Bear the cost of the compensation and maintenance through gas system tolls and fees for 30 years.
• Owners of nuclear power plants with several shareholders: Ownership of the operating license is deemed transferred to the entity already running the plant, with no further procedures needed.

Words worth knowing

Hibernacion (hibernation)

A situation where the facility is kept preserved and operational but unused: no gas is injected or extracted.

Concesion de explotacion (operating concession)

An administrative permit allowing a private company to use and operate a facility or resource owned by the state.

Sistema gasista (gas system)

The set of natural gas facilities and activities in Spain, whose costs and revenues are shared among users through tolls and fees.

Pignorar (to pledge)

To use a right or asset as security for the payment of a debt.

Peajes de acceso (access tolls)

Charges paid by users for using the networks and facilities of the gas system.

It summarizes the law as published in the BOE. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries