Portugal’s Galp Energia set between 1 billion euros ($1.11 billion) and 1.2 billion euros in annual investment until 2022 in an increase from up to 1 billion under an earlier plan, seeking to grow its natural gas and renewable energy business.
The oil company’s chief executive, Carlos Nuno Gomes da Silva, stated on Tuesday it would invest 10-15% of the total in new renewable energy, most of it to utilize solar power, although not putting aside wind power and other technologies.
“But clearly, our primary aim will be solar photovoltaic, where we are already developing a set of internal schemes that will play a vital role in hedging and complementing our power business … And we are speaking about greenfield plans, mainly,” he said in a conference call.
The company sated over 40% of its long-term investment was focused on a change to greener energy, namely projects involving the generation of natural gas, which burns better than oil, as well as renewable energy. Galp expects its large gas generation and liquefaction plant in Mozambique and the Carcara project in Brazil to utilize most of that investment.
“Carcara is the new kid in town that will have us included and actively work on for the next few years,” the CEO stated. Galp stated if purchase opportunities arise that would make it go past the 1.2 billion euro investment boundary, it could divest its stakes in some schemes to raise capital.
Galp’s investment in oil and gas exploration and generation will remain aimed at developing its various world-class projects, such as the sub-salt regions off Brazil’s coast.