Taking a stand for energy-independent Europe

Noteworthily, MidCat can also be employed for transporting renewable gas, including green hydrogen, produced directly from water while using renewable energy (such as solar or wind power) to do so.
The French government has been opposed to the project for years, but is now reportedly re-assessing its position the MidCat pipeline, which would enable to reach Northern Europe from the Iberian Peninsula to.

Portuguese Secretary of State for European Affairs Tiago Antunes recently stated that there is “a very compelling case” for completing that pipeline, insisting on the fact that it would transport “clean, green hydrogen” in the future. Mr. Antunes describes the project as a "no-brainer," while the French government remains non-affirmative with respect to the pipeline project. He expects that with a new assessment of the project by France, and taking into account the new circumstances entailing the energy crisis in Europe and the geo-strategic risks after Russia's invasion of Ukraine, it will be concluded that it is worthwhile and must move forward, as it is “in the interest of the whole of Europe”. Mr. Antunes added that MidCat could ultimately be used to transport renewable gases, such as green hydrogen.

In the short term, it seems that Paris’ priority is to sell gas from its four LNG terminals to Germany, rather than serving as a transit country for gas from the south. In the longer term, France hopes to sell hydrogen made using nuclear energy. This aligns with its broader strategy of promoting low-carbon technologies and reducing greenhouse gas emissions. However, there remain numerous challenges associated with this approach.

Russia supplied 40 percent of Europe's gas before the invasion of Ukraine. Now, Northern Europe is very eager to diversify its energy sources. German Chancellor Olaf Scholz described the MidCat pipeline as "dramatically missing" from Europe's network.

Spain and Portugal possess significant gas import capacity, comprised of their seven LNG terminals with capacity to convert liquefied natural gas transported by ships into gaseous form -- for industrial and residential use. If the necessary infrastructure were in place, then that gas could be transported to countries such as Germany through France via a pipeline.

Similarly to France's efforts to revolutionize energy production using green hydrogen, Berlin's focus in the MidCat project is also on the potential of green hydrogen, beyond short-term LNG supplies. Spanish and German officials argue that the pipeline could be repurposed to transport zero-emission hydrogen fuel produced in the Sahara desert or such to Europe's highly industrialized zones. However, France would prefer to produce hydrogen locally, reducing dependance on imports, and not face technological challenges associated with transporting hydrogen.

Discussions about the MidCat pipeline have regained prominence in European politics, as per sources in Parliament who attribute it to acute concerns sparked by the sabotage of the Nord Stream 1 and Nord Stream 2 pipelines. The European Parliament recently voted on a resolution to tackle energy prices, with related measures inclusive of the relaunch of the MidCat pipeline, despite opposition from French MEPs. Linking the Iberian Peninsula and France in order to ensure the EU’s energy security, as the German, Spanish and Portuguese governments have been calling for since mid-2022. Although lacking legal force, the parliamentary resolution holds political significance and can potentially impact future proposals and decisions of the European executive branch. Some believe that this could encourage France to demonstrate greater European solidarity, as has been repeatedly proclaimed.

Project Overview Summary

• Owners: Enagás, Teréga
• Operators: Enagás, Teréga
• Parents: Enagás, EDF, GIC, Snam, CAA
• Proposed capacity: 7.5 billion cubic meters a year
• Proposed length: 1,250 km
• STEP: 227 km
• Cost: €3 billion (US$3.7 billion)
• Financing: €4.15 million grant from the EU's Connecting Europe Facility
• Status: Proposed
• Start year: TBD