Spain’s Repsol to explore for gas in Portugal’s Algarve region

The chairman of Spanish energy major Repsol said Wednesday the company plans to explore for natural gas next year in Portugal’s southern Algarve region.

Antonio Brufau conveyed that message to Portuguese President Anibal Cavaco Silva at the Belem presidential palace in Lisbon, where he also was scheduled to meet with Prime Minister Pedro Passos Coelho.

“In the exploration area, if we obtain all the permits and all the circumstances are in place, the idea is to drill in the Algarve with the purpose of finding gas, since we believe there are good reserves,” Brufau said.

Repsol already made a discovery in Spain “very close” to that region, he recalled, adding that the company now is looking to reach an agreement with a Portuguese partner.

“We’re (working in Portugal) with (Lisbonbased) Partex, but I think we should bring on board some other company from here in this exploration (effort), since it’s an asset for the country,” Brufau said.

He also said the eventual discovery of gas reserves on Portuguese soil would make it necessary “to build infrastructure to link the Algarve with the Port of Sines.”

Repsol currently has a network of more than 400 service stations in Portugal and also has operations there in the liquefied petroleum gas and petrochemicals sectors.

“We’re very satisfied with how our operations are going in Portugal, which like Spain is in a clear growth phase and that’s apparent in the business,” the chairman said.

During his visit to Lisbon, Brufau also met with executives of different Portuguese companies and had lunch at the official residence of Spain’s ambassador to Portugal, Eduardo Junco.