Portuguese oil and gas company Galp Energia has released its 2019 results. The group’s global hydrocarbon production rose by 14% to 121.8 kboe in 2019 as a result of the scaling up of the Lula project in Brazil and block 32 in Angola. However, raw materials processed in the refining system decreased by 5% to 96 mboe, because of maintenance works and operational restrictions. Consequently, total product sales dropped by 3% to 16.2 Mt, due to lower export volumes even if sales to direct clients grew by 1% to 8.7 Mt. Sales of natural gas and LNG remained flat, at 7.6 bcm (1% drop in sales to final clients to 4.7 bcm but 2% increase in trading volumes to 2.9bcm), while sales of electricity to direct clients fell by 17% to 3.2 TWh and electricity sales to the grid increased by 2% to 1.3 TWh.
In 2019, capital expenditures reached €856m with 70% of the amount devoted to exploration and production (E&P) activity, mainly in Brazil. The company plan to invest €1-1.2bn/year during the 2020-2022 period, and to allocate, over the next decade, 40% of capital expenditures to energy transition and 10-15% to renewable generation and new businesses. Galp Energia intends to reach 10 GW of renewable capacity by 2030. In January 2020, the Portuguese enterprise reached an agreement with the Spanish construction company ACS Group to acquire ACS' portfolio of solar projects in Spain, including 900 MW in operation and 2 GW in the pipeline. The total installed capacity of the solar power plants included in the transaction will reach 2.9 GW in 2023.