This pipeline will expand Andalusia’s natural gas pipe and transmission infrastructure to meet the expected increase in demand and reinforce the mainland transmission system. The project is part of Endesa’s construction plans for gas transmission pipelines designed to supply piped natural gas to the Bay of Cadiz. In addition, it will allow Endesa Gas Meridional, gas distributor in Andalusia, to broaden its reach by supplying new markets such as Rota, Chipiona and Sanlúcar de Barrameda. The project will also make it possible to connect unique supply points such as the two prisons in El Puerto de Santa María and the Rota Air Force base, among others.

Endesa Gas is to build a 22 kilometre-long gas pipeline in the province of Cadiz between El Puerto de Santa María and Rota, entailing an investment of Euro 4.215 million. Construction is scheduled to last three months, with the infrastructure coming on stream in the last quarter of 2007.

This branch is a continuation of the Jérez de la Frontera-El Puerto de Santa María pipeline, and is part of the specific collaboration agreement signed on 6 November 2003 between the Andalusia regional government and Endesa Gas Transportista for the development of gas infrastructure to bring piped natural gas to cities where it is currently not available, in accordance with general guidelines in the Andalusia Energy Plan.

This initiative will expand the natural gas pipe and transport infrastructure in the province of Cadiz. It will also allow Endesa Gas’ distribution subsidiary in Andalusia Endesa Gas Meridional, to broaden its reach, supplying new markets such as Rota, Chipiona and Sanlúcar de Barrameda, communities around the Bay of Cadiz in which it has administrative authorisation to distribute gas.

With this project, the liquefied natural gas (LNG) plant at Costa Ballena can be dismantled as natural gas will be available for distribution directly from the pipeline.

It will also connect unique supply points such as the prisons in El Puerto de Santa María, the Rota Air Force Base, the Sanlúcar de Barrameda Shopping Centre, EADS, etc. as, based on current demand and the outlook for the residential market, consumption is forecast to reach 136 GWh/year in 2011.

Construction of these pipelines forms part of Endesa’s plan to build natural gas lines to supply piped gas to communities around the Bay of Cádiz, enabling the group to cater more efficiently for the expected increase in natural gas demand in this region of Andalusia and enhance the entire gas network’s regularity and efficiency by eliminating the satellite LNG plants currently operating in the area.