The Spain-based energy company said it will invest EUR18m ($25.3m) in gas distribution and EUR26m ($36.6m) towards electricity network development.

The company through its affiliates Gas Natural Castilla y Leon and Union Fenosa Distribucion, will undertake the work which will involve maintenance and improvement of the current distribution networks and extending the natural gas network to new municipalities.

The company forecasts to supply natural gas service to more than 400,000 customers in 2011, about 200,000 new customers more than in 2010.

The company said it will build 150km of gas distribution pipelines extend services to supply gas to towns and service in other new localities.

The company also intends to offer electricity service to around 350,000 customers, about 7,000 more than last year, in the Provinces of Salamanca, Segovia, Soria and Zamora.

Over the next two year, the company will upgrade the substations, new substations in Segovia and Leon and the new Ponferrada-Camponaraya line in Leon.