FINWIRES · TerminalLIVE
FINWIRES

EU Welcomes New Spain-Portugal Power Link, Adding 1,000 MW of Cross-Border Capacity

By

The European Commission welcomed the inauguration of a new electricity interconnection between Spain and Portugal, in a statement on Thursday, hailing it as a key energy milestone for the region.

The transmission system developed by Spanish transmission system operator Red Electrica and Portugal's REN is aimed at supporting energy independence across both countries, while advancing the EU's broader renewable energy goals.

The project is set to increase the cross-border electricity transmission capacity between the two countries by 1,000 megawatts, reaching 4,200 MW from Spain to Portugal, and 3,500 MW from Portugal to Spain.

Besides this, the project is set to integrate an additional 281 gigawatt-hours of renewable electricity annually while reducing carbon dioxide emissions by about 113,000 metric tons per year.

The European Commissioner for Energy and Housing, Dan Jorgensen said that such cross-border interconnections were crucial for renewables and that "a stronger European Union must be based on a strong internal electricity market."

Related Articles

Commodities

PJM Extends Grid Alerts as Extreme Heat Keeps Power Demand Elevated

PJM expanded emergency preparedness measures as a prolonged heatwave pushed electricity demand toward record highs, the grid operator said in a Thursday evening update.PJM said it kept its Maximum Generation Alert and Load Management Alert in effect for Thursday and extended both alerts through Friday across its footprint.The Maximum Generation Alert allows transmission and generation owners to postpone equipment maintenance or testing, helping keep more generating units available to meet electricity demand.PJM also uses the measure to alert neighboring grids that it may limit electricity exports if needed.The Load Management Alert prepares the grid operator for potential demand-response measures, including pre-emergency and emergency programs that pay participating customers to reduce electricity use during peak periods.To strengthen system reserves before the expected evening demand peak, PJM activated its Pre-Emergency Demand Response program on Wednesday afternoon.PJM also extended its Hot Weather Alert across the region through at least Saturday. The operator issues the alert before periods of extreme heat or high humidity so transmission operators, generators and other facilities can prepare for higher electricity demand.PJM said it will continue to take proactive steps to maintain reliable grid operations as the prolonged heatwave keeps electricity demand elevated.

Commodities

US Natural Gas Update: Larger Inventory Counters Heatwave to Edge Prices Down

Natural gas futures regained some losses in after-hours trading on Thursday but ended down on the day after US government data showed a larger-than-expected increase in storage inventories, outweighing support from strong cooling demand during a widespread heatwave ahead of the long Independence Day holiday weekend.Both the front-month Henry Hub contract and the continuous contract edged down by 0.47% to $3.205 per million British thermal units.The August contract fell to an intraday low of $3.151/MMBtu ahead of the US Energy Information Administration's weekly storage report as traders anticipated a sizeable inventory build. Although prices recovered after the release, they remained below the previous session's close.The EIA reported that US natural gas inventories rose by 87 billion cubic feet in the week ended June 27, exceeding analysts' expectations for an 84-Bcf injection and well above the five-year average build of 64 Bcf for the period.Total gas inventories were 1.0% below year-earlier levels but stood 6.4% above the five-year seasonal average, indicating comfortable supply levels despite robust summer demand.Market sentiment was also pressured by updated weather forecasts pointing to cooler conditions beyond the current heatwave. According to Commodity Weather Group, forecasts shifted toward cooler conditions, with seasonally normal temperatures expected across the eastern two-thirds of the US between July 7-16.Near-term weather, however, remained supportive. A heatwave covering much of the eastern two-thirds of the country continued to boost electricity demand for air conditioning.Lower-48 natural gas demand was estimated at 79.1 Bcf/d on Wednesday, down 1.1 Bcf/d from the previous day but 4.7% higher than a year earlier, Barchart said citing BNEF data. The daily decline came despite a 4.1-Bfc/d increase in gas-fired power burn, to 42.3 Bcf/d, according to Celsius Energy.Preliminary estimates from Energy Buyers Guide indicated that natural gas consumption by power generators exceeded 50 Bcf/d on Thursday, a level typically seen only during the hottest days of the summer. While temperatures are expected to peak on Friday, demand could be tempered by reduced industrial and commercial activity during the Independence Day holiday."Looking further ahead, the market may remain rangebound through the next several weeks unless heat persists long enough to materially shrink injection sizes, with rallies still likely to face resistance while inventories remain above normal and traders wait for a clearer shift in the late summer balance," Gelber & Associates said in a market note.On the supply side, estimated net flows to US LNG export terminals rose to 19.3 Bcf/d on Thursday, up 0.1 Bcf from Wednesday and 1.5% higher than a week earlier.Meanwhile, Lower-48 dry gas production was estimated at a very healthy 111.7 Bcf/d, up 1.1 Bcf on the day and 2.8% above year-ago levels.

Commodities

Oversupply Narrative Keeps Pressure on US Exploration, Production Stocks, RBC Says

US exploration and production stocks remained under pressure as lower oil prices and persistent oversupply concerns weighed on sector sentiment, RBC Capital Markets said in a note on Wednesday.RBC said US drilling activity remained largely unchanged, with Permian rig counts only slightly higher year to date. Private operators have increased activity, although weaker oil prices could slow that trend.Oil prices remained below $70 per barrel as markets assessed US-Iran talks that suggested improved shipping through the Strait of Hormuz.RBC said the oversupply narrative remained dominant as Russian and Saudi supply increased while the UAE boosted crude exports to a record 3.7 million barrels per day in June after leaving the Organization of the Petroleum Exporting Countries in May.A 3.8 million-barrel decline in commercial crude inventories, together with a 5.5 million-barrel release from the Strategic Petroleum Reserve, reduced total US oil inventories to their lowest level since 1984, RBC said, citing Department of Energy data.Gas-weighted exploration and production companies gained 2% over the past week, while oil-weighted peers lost 3%.Large-cap stocks dropped 4% and small- and mid-cap names fell 2%, even as the SPDR S&P Oil & Gas Exploration & Production ETF advanced 1% despite a 3% decline in West Texas Intermediate crude and a 1% drop in Henry Hub natural gas prices.Generalist investors have shown greater interest in energy valuations, although conversations continue to center on macroeconomic conditions and the improving outlook for natural gas equities, RBC said.As the second-quarter 2026 earnings season approaches, RBC expects specialist investors to step up activity.The bank said commodity price movements and merger-and-acquisition opportunities continue to dominate discussions, with EOG Resources (EOG), Devon Energy (DVN), EQT (EQT), Permian Resources (PR) and California Resources (CRC) emerging as investor favorites.

$CRC$DVN$EOG$EQT$PR