Enagas is the Technical Manager of the Spanish Gas System and the main carrier of natural gas in Spain. It is also certified as independent TSO by the European Union, which homologates the company to gas transmission network operators of other European countries.
In 2011, the company began its international activity. Since then, it is a shareholder of TLA Altamira regasification plant in Mexico and participates in gas pipelines construction in that country. Also, it acquired a LNG terminal in Quintero, Chile, in 2012.
Also, Enagás ended in August 2012 the certification process as a Transmission System Operator (TSO), followed by the CNE and the European Commission. This certification guarantees the independence of the gas transmission grid regarding Spanish gas producers and shippers, and it is a milestone in the history of the company harmonizing it with the natural gas transmission network operators from other European countries.
Chronologically, the milestones and most relevant legislation issues throughout the history of Enagás are the following:
• As a consequence of the important growth in energy consumption and the existing forecasts in Spain, at the beginning of the 70s, Spanish authorities decided to spread the use of natural gas to the entire national territory.
• With the objective of creating a network of gas pipelines in the Iberian Peninsula, the Ministry of Industry published a Decree on March 23 1972, creating the Empresa Nacional del Gas (National Gas Company, Enagás, S.A.).
• The State considered that it was important to take part in this newly created company through the National Industry Institute (I.N.I.).
• In the first years following its creation, Enagás, S.A. concentrated on carrying out planning analyses and technical studies necessary in order to develop gas infrastructure.
• As a consequence of these strategic reports, on November 13 1975, the Official State Gazette published the first Gasification Plan, which included the administrative licence granted to Enagás, S.A. for the construction of the gas infrastructure network in Spain.
• In 1981, Enagás, S.A. became a part of the National Institute for Hydrocarbons (I.N.H.).
• In June 1994 I.N.H. sold 91% of Enagás, S.A.’ capital to Gas Natural SDG., with the remaining 9% being sold in October, 1998.
• Moreover, and in accordance with the Royal Decree-Law 6/2000 of June 23, Enagás, S.A. was appointed Technical Manager of the Gas System. Among its main functions, it has the commitment of guaranteeing continuity and safety in natural gas supply and the correct coordination of access points, storage, transport and distribution.
• In June 2002, Enagás, S.A. started to quote in the stock exchange. Law 12/2007, published on 2 July 2007, that modifies Law 34/1998 on the hydrocarbons sector in order to adapt it to Directive 2003/55/EC of the European Parliament and Council of 26 June 2003, on community standards for the internal market of natural gas.
• This Law establishes, in addition to the current 5% maximum limit on shareholdings, a 3% limit on the exercise of voting rights. Any physical person or legal entity, involved in the gas sector and those which direct or indirectly participate in its capital over 5% will not be able to exercise voting rights in the Technical System Operator over 1%. These limitations will not be applicable to the direct or indirectly participation corresponding to the public Administration.
• In addition, with the objective of strengthening its independence as the Technical System Operator, the Company had separated the activities that it carries out as the Technical Operator of the System from those that it carries out as a carrier and network manager. Therefore, Enagás, S.A. had created a specific unit responsible for the Technical System Operator in December 2007, with accounting and functional separation in order to strengthen their independence.
• The Royal Decree Law 6/2009, dated 30 April, designated Enagás, S.A. the condition of Transmission System Operator for the high pressure gas network.
• The Twenty-Third Transitory Provision of the Law 34/1998, of 7 October on the Hydrocarbons Sector was modified by Law 12/2011, of 27 May, governing civil liability for nuclear damages or damages caused by radioactive materials and regulated in the new Twenty-Third Transitory Provision of the Law 34/1998, establishing the legal due for Enagas S.A. to hive-down and establish two new subsidiaries.
• Due this legal imperative, in July 2012, Enagás has added to the hive-down operation and it has formed two newly-created subsidiaries, Enagás Transporte, S.A.U. y Enagás GTS, S.A.U., all the financial units corresponding to its activities as Common Carrier and Manager of the Gas System, including personal and heritage elements, assets and liabilities.
• The indirect acquisition from Enagás (via its subsisidiary Enagás Transporte S.A.U.) comes as part of the 3rd EU Gas Directive, which states that "vertically integrated energy operators must separate transmission operations from the rest of their businesses, boosting the independence and efficiency of both the system and companies”.