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Spain backs Gas Natural Fenosa's Doñana gas storage project

The Ministry of Industry of Spain has granted its administrative approval and declared of public utility the Marismas Occidental gas storage project developed by Gas Natural Fenosa in Almonte (Huelva) near Doñana.

Since 2008, Gas Natural Fenosa has been developing the Doñana gas storage project near a protected area in the Huelva and Seville provinces. The group had to submit four separate applications for the project with the Ministry of Environment, which approved them in 2013. In July 2014, the regional government of Andalusia approved just two out of four permits (outside the protected area) and rejected the entire project, prompting the group to claim €358m in compensation.

Gas Natural Fenosa will drill two new wells in the allowed zone and install two gas pipelines between the facilities. The group will have to set up a €1.3m environmental guarantee for potential damages during the construction phase.