The Spanish Supreme Court has upheld a July 2013 decision by the High Court of Justice of Madrid that rejected the administrative authorization granted by the Ministry of Industry to gas transmission network operator Enagas for the construction of the El Musel LNG import terminal in Gijon. Enagas had filed an appeal against this decision in December 2015.
The 7 bcm/year LNG terminal, whose construction is already complete and which is awaiting a recovery in gas demand to start operations, falls under a 1961 regulation preventing the construction of unhealthy and dangerous installations within 2 km of villages. Enagas claimed that this regulation was still in force when it started the authorisation process but that it had been repealed at the time it received the permits (in 2008 and 2009).
The Supreme Court has dismissed Enagas' arguments and the company will have to restart the authorisation process before commissioning the project (initially expected in 2011).
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