ACS, Eurogas and Enagas Sign Agreement to Speed Up Castor Storage Project

Calgary-based Eurogas Corporation, Spanish infrastructure services firm ACS Group and gas midstream firm Enagas have entered into an agreement that is aimed at significantly advancing the Castor underground natural gas storage project, located in the Castellon province of Spain.

ACS will increase its ownership in Escal UGS, the Spanish company developing the project, from 5% to 66.67%. Castor Limited Partnership (CLP), of which Eurogas is a 73.7% owner, will own 33.33% in Escal UGS.

When the Castor underground gas storage starts its operations, ACS will sell to Enagas half of its 66.67% ownership, at which point CLP, ACS and Enagas will each own 33.33% in Escal UGS.

ACS will be responsible for the development and funding of the project until the inclusion of the Castor storage facility in the gas system. Total investment is estimated at over E1.2 billion.