Op-ed: Government yields to ACS and gas prices rise

The Boletín Oficial del Estado (BOE) published yesterday an authorization from the Minister of Industry that will allow the Castor Underground Natural Gas Storage unit to get underway in May. Since Actividades de Construcción y Servicios (ACS) got involved in the project, costs have tripled from 500 million to 1.3 billion.

The Yela de Enagás storage facility is a smaller project, which also received the go-ahead yesterday and will cost 200 million euros. That Castor's construction project is becoming more expensive could lead to an 8% increase in the price of gas tolls, which would trickle down to consumers.

The Spanish government caved and approved the project when it should have carried out an investigation while there is still time. The National Energy Comission (CNE following the Spanish abbreviation) warned that in the case of falling demand, so we may not need the gas that is destined for these storage units. This is another reason to reconsider the government's decision.