With this report on the gas sector, the Spanish Gas Association, Sedigas, presents the main figures from the general energy field and specifically the gas industry, within the context of yet another difficult economic year, which has slowed the pace of the industry and of economy in general.

In 2010, a public debate began in Spain to establish the energy mix of the future; its result will define the strategies to follow over the coming years. Sedigas defended the presence of gas due to its ability to stimulate wealth in the sector and its favourable environmental properties. This energy source can, to a great extent, help to achieve the goals set out in the European Union’s Green Package, as indicated in a study on the sector undertaken by Garrigues Medio Ambiente.

Another recent study by Energy Markets International (EMI) underlines the importance of gas within the whole of the national economy. According to this document, the gas industry’s economic impact exceeds 8,500 million Euros, with investments over 11,000 million Euros, during the last decade. The ability to generate employment has reached 90,000 jobs, bearing in mind those covered by installers. Last year, we witnessed natural gas consumption being maintained when compared to the previous fiscal year. In fact, there was a 10% increase on conventional demand, that is, within the industrial, commercial and domestic sectors.

In contrast, the demand for gas in power stations decreased due to heightened hydraulicity and more electricity generation stemming from renewable sources. However, natural gas continues to be the main source of electricity generation in Spain, followed by nuclear energy, wind energy and hydropower.

I cannot conclude before stressing the significant efforts being carried out in Spain with regard to the diversification of gas origins, having reached 14 at the 2010 year end. Once again, Spain positions itself as one of the European countries with the most diversified natural gas production. LNG has played a key role in these results, enabling 76% of the gas that reaches our shores to travel by pipeline.

Finally, I hope that this publication which is available to you will serve as a reference with regard to natural gas issues both in Spain and around the world.