Gonzalo (Enagás) believes that gas prices will normalize at the end of 2027 if the Strait of Hormuz is reopened

SantanderThe Strait of Hormuz continues to be the focus of global economic activity. Enagás CEO Arturo Gonzalo Aizpiri has stated that, if the peace agreement and the reopening of the Strait of Hormuz are confirmed, gas futures markets will not recover "full price normality" until "the end of next year or the beginning of 2028".

Gonzalo predicted that it will be then when "a slow fall in gas prices will begin", which will go from the current 40 euros/megawatt to 30 euros/megawatt, during his intervention at the UIMP and APIE summer course this Monday.

The Enagás chief executive estimated that the war in Iran has caused an "overcost in the gas bill" of around 1,000 million euros for Spain. "We have not had any fear of supply security disruption, but we have had an impact on prices," he agreed. For Gonzalo, it has been "significant" but "nothing to do" with the consequences of the invasion of Ukraine. Prices this year have reached 70 euros/megawatt.

On the logistics front, in the event of a peace agreement and the reopening of the infrastructure, he believes that normality will arrive in 2 to 4 months. He recalled that the strait needs to be demined and the "usual" logistics system routes need to be re-established, and that Qatar has damages affecting approximately 17% of its production.

The director of the gas company has assured that A "lifeline"

The CEO of Enagás has defended gas infrastructure as a "strategic lifeline" for Spain and a "shield against the volatility of crises." With the invasion of Ukraine, Spain began to buy gas "at a discount" compared to the European average price because it did not depend on Russian products, which has resulted in savings of up to 10 billion euros, according to Gonzalo.

Until then, the State had "always" paid a higher price than the European average. Spain accounts for 37% of the total LNG storage capacity on the Old Continent. "We have an enormously resilient system, which is seen as a strategic asset for Europe," he stated.

H2MED, at "cruising speed"

The executive of the gas company has assured that the maritime hydro-duct that will connect Barcelona and Marseille, the H2Med, "is moving at cruising speed" and "will be fully operational in 2032, as planned". The intention is to connect the State with Portugal, on the one hand, and with France and Germany, on the other.

Gonzalo referred to it during his staunch defense of green hydrogen. "Electrification is a major player in decarbonization, but it must be complemented by green molecules," he insisted. He recalled that this product is one of the "local solutions, which increase strategic autonomy" in a context of global uncertainty. According to Enagás's forecasts, 25% of final energy demand in 2050 will be hydrogen and its derivatives, a percentage that rises to 50% in aviation and up to 55% in maritime transport.