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Spain: CLH accused of abuse of dominance in hydrocarbons

By  |  February 26, 2018

Spanish fuel distributor Perseoil has accused the Compañía Logística de Hidrocarburos (CHL)—the gatekeeper to fuel in Spain after the liberalization of the sector—of unjustifiably denying it service, causing damage to its business and the market in general.

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    Perseoil held a supply contract with CLH, the main fuel distributor in Spain, which had been rescinded at the start of this year, causing Pereoil to effectively be kicked out of the market. The company accuses CLH of rescinding the contract without justification, since the situation that caused the breakup had already been resolved before the National Assembly. Perseoil made the decision to denounce CLH before the National Commission for Markets and Competition (CNMC) for “having denied access to its storage facilities without just cause.”

    In the letter sent to the CNMC on February 12, Perseoil bases the complaint on three points.
    The first, “the unavoidable use of the storage facilities and pipelines held by CLH in the wholesale trade of fuels and hydrocarbons,” explaining that Spanish law considers the supply of fuel to be an activity in the common interest.

    It also points out CLH’s dominant position, due to its vast pipeline network, which greatly facilitates access to the product in multiple points of Spain 24 hours a day. In addition to that, CHL owns 90% of the storage capacity of the country.

    Finally, Perseoil argued before the CNMC that there are no reasons for the termination of the contract, since the company’s equity situation has not been altered nor has it seriously breached its obligations.

    Full Content: El Confidencial Digital

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