A gas utility in Spain has secured a loan worth €600 million (£443m) from the European Investment Bank (EIB).

Gas Natural Fenosa will use the cash to finance the expansion of its gas networks in the country as part of its investment programme until 2018.

It is the first installment of a loan totalling €900 million (£664m) approved by the EIB.

The works will involve the renewal, upgrading and expansion of natural gas transmission and distribution networks, including the construction of pipelines and liquefied natural gas plants.

The EIB stated: “The investments carried out by Gas Natural Fenosa will contribute to improving energy security and diversification and bring environmental benefits by replacing less clean and more expensive fuels with natural gas, reducing energy costs and CO2 emissions in households, businesses and industry.”