Spanish gas and electricity major Iberdrola has announced plans to invest more than E130 million in natural gas distribution projects in the eastern coastal regions of Spain in coming years, with the aim of supplying gas to more than 150,000 customers in the Valencia and Murcia regions.

The company, which began gas distribution in Spain in June, is to invest approximately E44 million in the Valencia region, and more than E88.5 million in Murcia to deliver gas to consumers.

It has now begun supplying clients at an industrial park in Segorbe, where it will soon extend its service to domestic customers. It has been granted a permit to supply gas to the town of Benidorm, and has applied for permits to install gas lines in 39 other municipalities in the Valencia region.

The company has also applied for permits to extend the service to six zones in the Murcia region, which, like that of Valencia to the north, has been undersupplied with piped gas. Iberdrola has permits to supply new housing estates in the northern part of the city of Murcia, comprising more than 32,000 homes. It expects to begin delivering gas there in the third quarter of 2008.