How Spain regulates oil and gas activities

Automatic summary, not yet reviewed

1. The law regulates all activities involving liquid and gaseous hydrocarbons: from finding and extracting oil and gas to refining, transporting, storing and selling them. Everything must follow objectivity, transparency and free competition.
2. Hydrocarbon deposits and underground storage facilities are state public domain property. Companies may freely carry out these activities, but they are considered of general economic interest and must guarantee supply.
3. The Government plans and sets basic rules, tolls and prices. The State authorizes large facilities and imposes penalties; the Autonomous Communities authorize and oversee what happens within their territory.
4. To explore and exploit hydrocarbons you need an exploration authorization, a research permit (six years, extendable by three) or an exploitation concession (thirty years for deposits, fifty for storage). Holders of a research permit may apply for the concession.
5. Refining, transport and sale of petroleum products are liberalized and their prices are free. Retail distribution (gas stations and fixed supplies) may be carried out by any person or company with authorized facilities.
6. Wholesale operators and other parties must keep minimum security stocks of petroleum products, up to 120 days of their annual sales. the Corporation for Strategic Petroleum Reserves (Corporación de Reservas Estratégicas de Productos Petrolíferos) creates and manages strategic reserves and monitors compliance.
7. The natural gas system is organized into transporters, distributors and retailers. Transport and distribution are regulated activities while retailing is free; companies must keep separate accounts for, and in some cases legally separate, incompatible activities.
8. Breaking the law, refusing tariffed supply, manipulating prices or measurements or failing to keep security stocks are offenses, which may be minor, serious or very serious. Penalties are fines and, in very serious cases, revocation of the authorization.

Who it affects

• Consumers of gas and petroleum products: Have the right to supply throughout the territory and protection against outages and fraud.
• Companies in the sector (refiners, transporters, distributors and retailers): Must obtain authorizations, keep security stocks, separate activities and comply with regulated prices and tolls.
• Gas stations and retail sales points: Must register in the regional registries and meet technical and safety rules.
• Autonomous Communities: Authorize, inspect and penalize facilities and activities within their territory.

Words worth knowing

Hidrocarburos (hydrocarbons)

Products such as oil and natural gas, from which fuels are obtained.

Peaje (toll)

The fee paid for using another company's gas transport or distribution facilities.

Existencias mínimas de seguridad (minimum security stocks)

Fuel reserves companies must keep to guarantee supply in case of shortage.

Consumidor cualificado (qualified consumer)

A large gas consumer who may buy gas freely from a retailer instead of paying the regulated tariff.

Concesión de explotación (exploitation concession)

A state permit to extract hydrocarbons from a deposit or use the underground as storage for a long period.

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