The Spanish Gas Association (Sedigas), presents its Annual Report for 2007, a publication setting out the key figures relating to the energy scene in general and to gas in particular, both nationally and internationally.

On this occasion, the most notable feature is its new format. We have decided to produce a digital version which is both easy to handle and efficient. The contents of the Annual Report can also be consulted using the same browser system, on the Sedigas web page (www.sedigas.es).

As the key figures in this Report indicate, the global gas panorama has not changed significantly in relation to the previous year. At the national level, Spain, with a 4.3% consumption increase, continues to be one of the European Union countries with the greatest increase in demand volume. This fact is remarkable at the present time, when there is some slowing down in the European gas market.

2007 was also the year prior to total liberalization of the Spanish gas sector. Of particular note is the publication of Law 12/2007, which introduced the provisions contained in the 2nd Directive, which had not yet been incorporated into the Spanish regulation. Spain has been one of the first countries to apply and develop the liberalization principles of the European Commission.

The decision of the Spanish gas industry to accelerate the gas market liberalization process is reflected in the figures achieved in 2007, in which 89% of all natural gas sales were supplied by trading companies in the liberalized market, with an increase of 2.7 points over 2006. Also of note is the disappearance in 2007 of the regulated market for all customers supplied at pressures above 4 bar.

With regard to total gas sales, a new historic maximum of 408 TWh was achieved. This figure represents a 4.3% increase, 0.2% more than in 2006. The largest demand increase was in the residential-commercial market, at 9.2% above the previous year; this increase was largely due to a net capture of more than 306,000 new customers during last year. The demand for natural gas for combined cycle electricity generation also increased in 2007, in this case by 5.5%. In fact, the demand for electricity generation purposes has multiplied by a factor of 13 during the period 2002-2007.

Spain has also decided on diversification as a guarantee of supply, and is now the European country with the largest number of supply sources. In 2007, Spain received natural gas from 11 countries, being Algeria, Nigeria, the Gulf States and Egypt the main suppliers. The supply of LNG, which in 2007 was 69% of the total supply - 410.4 TWh -, has helped underpin this strategic diversification.

The main advances in our gas industry have taken place in an international context characterised by increases in demand from emerging markets such as China, and a certain levelling off in Europe, due to the mild temperatures. The commercialised production of LNG increased by 10% in 2007 in relation to 2006, and has consolidated itself as a basic supply option, both for new consumer countries and for mature markets.