Prospex Energy (AIM: PXEN), an investor in European gas and power projects, announced that Spanish regulatory authorities have granted a 10-year extension to the El Romeral 1, 2, and 3 natural gas production concessions, owned by Tarba Energia. Prospex holds a 49% interest in El Romeral through its investment in Tarba.

The royal decree, signed on July 24, 2024, permits the Spanish Ministry for Ecological Transition and the Demographic Challenge (MITECO) to extend the El Romeral natural gas concessions for 10 years, the maximum allowable term.

This extension ensures the supply of electricity to the Spanish grid from the El Romeral gas facility and power plant until at least July 2034, with a potential further extension to 2044.

El Romeral is currently operating at 30% capacity (2.7 MW) as Tarba awaits permits to drill five additional infill wells on the concessions to boost production. Moreover, an adjacent solar project named "Helios" is expected to add 5 MW, utilizing shared infrastructure with the gas facility.

Commenting on the development, Prospex's CEO Mark Routh said, "The official extension of the El Romeral production concessions for the maximum allowable term of ten years is a very welcome step by the Spanish regulatory authorities. It is also an important official acknowledgment by the Spanish state of the crucial role natural gas will continue to play in the nation's energy security and the ecological transition process."