The €1.35bn Castor offshore gas facility, constructed to store 30% of the country’s daily gas requirement, was closed in 2013 following earthquakes of minor intensities, reports Reuters.
Escal, which is a joint venture owned 66% by Spanish builder ACS and 33% by Canada’s Dundee Energy, will be dissolved following the receipt of the payment.
The payment will be financed by a loan from a group of Spanish banks. This loan will be paid by gas companies and consumers over three decades.
Under the deal, the country’s gas grid operator Enagas will be responsible for the plant hibernation.
Spain halted operations at Castor last autumn after the area had witnessed more than 200 minor earthquakes.
The government will not pay for the plant; instead, the compensation cost will be transferred to gas companies and consumers, who will pay increased charge to Enagas for the operations of the country’s gas system. The additional revenue, generated through companies and consumers, will be used to pay back the loans.
Sources with knowledge of the agreement told the news agency that 50% of the loan amount for the compensation will come from Santander, with one third from Caixabank and the remaining 15% from Bankia.
