BRUSSELS: Over five million euros (5.7 million U.S. dollars) in infrastructure to increase links between French and Spanish gas systems is to be invested by the European Union (EU) in what they said Wednesday would be an important step towards the completion of the energy union.
To help increase the existing interconnection capacity between the French and Spanish gas systems, two grant agreements amounting to 5.6 million euros were signed on Wednesday for the necessary studies to launch construction works of the Midcat gas pipeline, according to an EU statement.
This will enable further bi-directional gas flows between the two countries and will also ensure greater market integration, it added.
“Today’s signature marks an important first step for further integrating the gas markets of the Iberian Peninsula with the rest of Europe,” EU Commissioner for climate action and energy Miguel Arias Canete said.
When built, Midcat will increase energy security across the EU, especially in member states more dependent on a single supplier, while ending the isolation of member states from EU-wide energy networks, he added.
The money will come from the Connecting Europe Facility (CEF), an EU funding program for energy infrastructure. The grants will cover up to 50 percent of the incurred eligible costs.
