Sabadell | ENAGAS Sell (T.P. 20,13 €/share) On Thursday, after the meeting between Spanish Prime Minister P. Sánchez and German Chancellor O. Scholz, where they defended the need to increase interconnections in Europe, the French Economy and Finance Minister, B. Le Maire replied that he will take a look at the MidCat project. Up to now, France had opposed MidCat, alleging it would be a project which would take too long to construct and the cost would be excessive. Furthermore, there were enivornmental objections from the French Energy Transition minister.
VALUATION: Positive news, but with a limited impact. It is a project which is already known, but for now is not being considered in ENAGAS’ estimates nor in ours until it is approved. As ENAGAS mentioned in its Strategic Plan 2022-2030, presented at the beginning of July, the European interconnections (Italy, Portugal and France) are long-term projects which are in the proposal and approval phase on the part of European regulators. So the company expects the approval in Q1’23 and puts a capex figure on this project of 370 million euros. This would imply c.7.7% of the capex forecast by ENAGAS up to 2030.