Spain delays 3.2 bln euros of energy investment

MADRID, April 23 (BestGrowthStock) – The Spanish government said on
Friday it sent a proposal to the national energy regulator to
postpone 3.2 billion euros ($4.3 billion) of investment in
natural gas and electricity infrastructure.

A fall-off in energy demand during the last two years made
the improvements outlined in the 2008-2016 plan unnecessary,
the Industry Ministry said in a statement. Spain’s worst
economic downturn for 50 years has reined in energy use.

The government is trying to meet its promise to slash the
public deficit from 11.4 percent of gross domestic product in
2009 to the European Union guideline of 3 percent by 2013.

Energy demand has shown a sharp increase in the first
months of 2010 and if this trend continued the country would
return to previous levels of energy use, the ministry said, and
the investments would be released again.

A spokesman for gas grid operator Enagas (ENAG.MC: ) said on
Friday the delay was expected.

Stock Analysis

($1=.7439 Euro)
(Reporting by Clara Vilar and Sonya Dowsett, editing by Gerald
E. McCormick)

Spain delays 3.2 bln euros of energy investment