“Electricity is not the solution; it is one of the solutions, because in other contexts, namely in the industry and transport sectors, we need complementary solutions where gas still plays a fundamental role, especially through the investment in renewable gases,” stated the government official in the parliamentary committee on Environment and Energy. The committee held a series of hearings today at the request of the PSD party regarding the development and investment plan for the natural gas distribution networks from 2025 to 2029 (PDIRD-G 2024), which has not yet been approved and has been submitted to parliament for analysis.
The Secretary of State highlighted that the accumulated monthly consumption of natural gas decreased by 28.2% between August 2022 and April 2024, but emphasized the importance of considering its role in the national energy paradigm, “not overshadowing electricity but complementing it.”
He further pointed out that renewable gases such as biomethane demonstrate “significant potential” in terms of sustainability and competitiveness due to their integration into existing infrastructure without significant investment for adaptation, enhancing energy resilience through the diversification of energy sources.
Earlier, João Faria Conceição, Executive Director of REN – Redes Energéticas Nacionais, assured that the transport network is “fully prepared and certified for the first planned phase of hydrogen incorporation up to 10%” following what he described as marginal investments.
From the perspective of the gas distribution network operators heard in the morning session, Gabriel Sousa, CEO of Floene, which manages nine of the 11 distributors operating in the country, argued that “the investment cuts proposed by the Energy Services Regulatory Authority (ERSE) will create irreversible disruptions in the gas infrastructure, compromising the maintenance and safety of the existing network, preventing it from fulfilling its role as a strategic asset in decarbonization and energy transition.”
Meanwhile, Nuno Fitas Mendes, CEO of Portgás, highlighted that the approximately 111 million euros of planned investment has a strong focus on preparing the infrastructure for the injection of biomethane and hydrogen, with units ready to inject biomethane in the municipality of Paredes (Porto district) and pilot projects for hydrogen injection set to commence soon in the Braga area. Ricardo Emílio, CEO of Sonorgás, emphasized that gas is “the most economical option for families.”
Paulo Carmona, Director-General of Energy and Geology (DGEG), noted that Floene reduced the total investment amount by 2.17% in the final proposal compared to the initial submission in April 2024, while REN Portgás and Sonorgás cut their investments by 13.38% and 19.15%, respectively.
Pedro Verdelho, President of ERSE, also heard today, reiterated the need to seek a balance in investments to contain tariff variations, suggesting that investments in hydrogen incorporation “should only be made if there is assurance that the blend is acceptable to consumers and the network operator.”
The Secretary of State for Energy remarked that there was “too much time and effort spent on empty promises about hydrogen,” which is not as mature as biomethane.
In October 2024, ERSE identified a “high sustainability risk” in the proposals for PDIRD-G 2024, totaling 382.1 million euros for tariff purposes, representing a 35% increase over the previous plan, and explored “alternative scenarios” with total investment reductions of 28% (-273.3 million euros) and 54% (-174.9 million euros).
The approval of the PDIRD-G is the responsibility of the government member in charge of the energy sector, following discussions in the Assembly of the Republic.
