2017-04-26

In 1993, the year the Portuguese natural gas project lifted up, Portugal had no backbone high pressure natural gas pipeline, storage and other infrastructures. From 1993 onwards, such infrastructures were built and natural gas became one of the most important sources of energy used in Portugal.

In the period between, 2000 and 2011, the natural gas demand increased 10% per year, and in 2015 the gas consumption,  registered an increase of 16%.

Until 2006 the promotion of natural gas and the development of the system’s main infrastructures were handled by the Galp group companies, Transgás – Sociedade Portuguesa de Gás Natural, S.A. (“Transgás”) and GDP – Gás de Portugal, SGPS, S.A. (“GDP”), under concession agreements entered into with the Portuguese State.

The public service concession for the import, transmission and supply of natural gas through the high pressure pipeline, was granted to Transgás,  and the public service concession for the distribution of natural gas through regional pipeline networks, was granted to six different companies, held by the GDP group.

However, the Decree-Law no. 30/2006 of 15 February 2006 (“Gas System Law”) transposed Directive 2003/55/EC,  implementing common rules for the internal market.

The most important measures established by the Gas System Law were (i) the creation of a  National Natural Gas Distribution Network (RNDGN), licensed or licensed to several operators, to guarantee non-discriminatory and transparent access to the network infrastructures of Liquid Natural Gas (LNG) and RNDGN terminals, (ii) the legal unbundling  between the network and infrastructure operators of the National Natural Gas System (SNGN) and the marketers, and (iii) the creation the figure of the natural gas supplier and the last resort supplier.

The Gas System Law principles were specified by Decree-Law 140/2006, of 26 July 2006  (“Gas Regulatory Law”), with new rules for the exercise of transmission, operation of storage of the LNG facilities, and distribution and supply services.

As a result of these changes, the natural gas sector was unbundled, and is currently divided into several activities, each one with different operators. Thus, the sector is structured in (i) reception, (ii) storage and regasification, (iii) underground storage, (iv) transportation, (v) distribution, and (vi) commercialization.

This briefing intends to give an overview on the functioning and organization of the different activities of the Portuguese Natural Gas Sector and on the main players of the sector.

 

2017-02-27

Following harsh economic years, Portugal has shown an unexpected surge in tourism and in the real estate market in 2016 which is now catching the attention of local and foreign investors.

Portugal’s moderate growth rate in 2016, the support of the European Central Bank’s monetary policy and the commitment of the government to bring the deficit to 2.3% have renewed investors’ interest in Portugal. Still there are challenges ahead. Portugal needs to reduce historically high levels of Government debt and unemployment.

After implementing a harsh economic program with little social unrest, Portugal has  facilitated the creation of new businesses, reduced the time for obtaining administrative permits, improved its labour legislation and reduced its corporate tax to 21%. For international investors looking for a place to invest in Europe, Portugal offers several advantages, of which many investors are not aware. Portugal is an ideal location for nearshoring industrial and services facilities because of its access to Europe’s 500 million consumers’ market and to the Portuguese-speaking world, which spreads across five continents: Europe, America, Africa, Asia and Oceania.

Portugal has a proven track record of successful foreign investments across a wide range of sectors. Investors that are considering Portugal as a place to invest want to know the hard facts about the country and not the stereotypes associated with the country and its people. Autoeuropa, Volkswagen’s Portuguese auto-plant, is one of its most productive plants. Nokia Siemens Networks chose Portugal to install its new Global Networks Solutions Center. Microsoft, Colt, Ikea have also successfully invested in Portugal in recent years.

Portugal has one of the most favourable business environments in the world. The World Bank's "Doing Business 2017" Report ranks Portugal in the top 25 of the world’s – 12th in the EU – most attractive locations to do business.

The «WhyPortugal 2017» report aims to answer the main questions of international businesses, institutional investors, private equities and industry players that are considering Portugal as a location to invest in Europe. This report provides an overview of the opportunities and challenges of doing business in Portugal and reviews the main aspects to be considered by foreign investors considering Portugal as a place to invest as regards the setting up of a business, hiring employees, taxation and government incentives.

2016-03-30

The Portuguese Government launched the Residence Permit for Investment Activity programme (ARI), in 2012. This program known as Golden Visa, is a quick solution for investors from outside the Schengen area to obtain a residence permit in Portugal.

This plan includes new rules on the awarding of residence permits for investment activity, known as “golden visa”, to citizens of non-European Union (EU) countries that wish to make a significant investment in Portugal and meet certain requirements.

The “golden visas” grant their holders the right to free circulation in Portugal and in the rest of Schengen area countries. In addition to general requirements applicable to residence permits, “golden visas” require their holders to undertake the obligation of investing in Portugal of certain minimum amounts for a minimum period.

In this paper, you will find an outline of the opportunities of living in Portugal and of the main aspects to be thought-out by everybody considering Portugal as a place to live.

2016-03-03

Following its successfully exit of the bailout of the International Monetary Fund (IMF), the European Union (EU) and the European Central Bank (ECB), Portugal is now catching the attention of foreign investors.

Portugal is no longer in the news for bad reasons. Still there are challenges ahead. Portugal needs to reduce historically high levels of Government debt and unemployment and continue reducing its budget deficit still perilously close to 3%.

After implementing a harsh economic program with little social unrest, Portugal is bringing down its chronic trade deficit and correcting some of its imbalances that have hindered its economic growth since the beginning of the millennium.

For international investors looking for a place to invest in Europe, Portugal offers several advantages, of which many investors are not aware.  Portugal is an ideal location for nearshoring industrial and services facilities because of its access to Europe’s 500 million consumers’ market and to the Portuguese-speaking world, which spreads across five continents: Europe, America, Africa, Asia and Oceania.

Portugal has a proven track record of successful foreign investments across a wide range of sectors.

Investors that are considering Portugal as a place to invest want to know the hard facts about the country and not the stereotypes associated with the country and its people.

Autoeuropa, Volkswagen’s Portuguese auto-plant, is one of its most productive plants. Nokia Siemens Networks chose Portugal to install its new Global Networks Solutions Center. Microsoft, Colt, Ikea have also successfully invested in Portugal in recent years.

Portugal has one of the most favourable business environments in the world. The World Bank's "Doing Business 2016" Report ranks Portugal in the top 25 of the world’s – 11th  in the EU – most attractive locations to do business.

WhyPortugal 2016 aims to show international businesses and institutional investors,  private equities and industry players considering Portugal as a location to invest in Europe.

This report provides an overview of the opportunities and challenges of doing business in Portugal and reviews the main aspects to be considered by foreign investors considering Portugal as a place to invest as regards the setting up of a business, hiring employees, taxation and government incentives.

2007-04-30

The Portuguese energy market is undergoing a liberalization process since late eighties through the implementation of the European rules.
 
In 2005, the Portuguese Government defined a new energy strategy. Competition, energy efficiency, security of supply and promotion of renewable energies are the main guidelines for this strategy. As a result, new regulatory frameworks for power, natural gas and oil systems were approved and the institutional model of the sector was reviewed, mainly through the concentration of power and gas major facilities in a single company. Further to the institutional and regulatory reform, the Portuguese Government has also announced ambitious targets for renewable generation and biofuels and a new program for energy efficiency. 

However, despite these reforms, the Portuguese energy markets, particularly power and gas markets, are not competitive. The size of the market, the insufficient integration with Spain and several regulatory constraints (such as, for instance, regulated tariffs for eligible customers, remaining in force of long-term power purchase agreements) are some of the causes for the lack of competition on those markets.

EDP – Energias de Portugal, S.A. remains the dominant company in the power system, REN – Redes Energéticas Nacionais, SGPS, S.A. is still waiting for privatization to occur and Galp Energia, SGPS, S.A., although privatized dominates the oil and natural gas markets.

This paper aims to give an overview on the main regulatory and practical conditions under which energy activities are carried out in Portugal.

© 2007 Macedo Vitorino & Associados