Good morning, ladies and gentlemen, and welcome to this conference call on Enagás' 2021 quarter results presentation. The results were released this morning before the opening bell and are available on our website at www.enagas.es. Mr. Antonio Llardén, Chairman of Enagás, will host this presentation. We expect this conference to last about half an hour. Afterwards, there will be a Q&A session during which we will endeavor to answer any questions as fully as possible, as usual. Today, the whole team is connected telematically, but we expect everything to work properly, as usual. Should any question remain unanswered at the end of this conference call, as you know, the investor relations department will answer such questions at any time later. So thank you very much, and now I hand the floor to Mr. Llardén.
Good morning, ladies and gentlemen. I'm Antonio Llardén, Chairman of Enagás, and thank you for your attention to this conference call that we are holding in this tough and exceptional global situation. I would like, first of all, to share with you what Enagás' priorities are in relation to COVID-19, and also I would like to explain to you the most significant aspects of the contingency plan that we have implemented at the company. Today, we pursue three clear-cut priorities. First, the safety, health, and well-being of our professionals and their families. Second, to continue providing an essential service such as the supply of natural gas as normal. And third, our commitment to contribute to the best of our abilities to mitigate the social impact of the pandemic. To this end, we have followed at all times the authority's recommendations from the Ministry of Health to Spain's Security Forces.
We are in permanent contact with the Ministry of Energy, that is, the Ministry for Ecological Transition and Demographic Challenge, and we are also keeping a close eye on the situation in all the countries where we operate. So, as I was saying, we have put in place a rigorous contingency plan that is proving to be highly effective, and thanks to which the gas system is operating completely normally. After the follow-up, since January, on the 24th of February, a first phase of all three contingency plan phases was activated. And on March the 3rd, we activated the so-called emergency level, that is, phase III. On March the 9th, when the Ministry of Health activated the so-called reinforced containment phase, Enagás right away activated level three of the crisis level, considered to be the maximum level.
We did that on March the 10th before the emergency state was declared throughout the country. Some of the measures that we have adopted as part of this contingency plan include the following, we have implemented teleworking in all positions where this is possible. We work in parallel from our two control centers, which are physically separated, and people are also separated there in order to guarantee people's safety as well as the security of the system. We have reorganized the shifts and on-call personnel at all the facilities that Enagás has throughout Spain, including regasification plants, underground storage facilities, and transport centers, with the ultimate goal of minimizing the risk of infection among employees.
We have also established a special system in all three main regasification plants in Spain, in Barcelona, Cartagena, and Huelva, where we have decided to confine two shifts of operators for 15 days to avoid infections that could endanger their health and the essential tasks that are carried out in these facilities. All this, I should say, was possible thanks to the collaboration by our professionals who are responding exceptionally well to this situation. From the moment we activated the first phase of the plan in late January, early February, we have identified and acquired spare parts and critical material to get prepared in case of potential shortages. In addition, we have intensified cleaning and permanent disinfection of our facilities, and we have also coordinated our plans with those of the contingency plans of critical service contractors. Why have we set out such a contingency plan?
The answer is pretty clear because we are a company that pursues a very clear purpose. We are working to ensure the operation and supply of natural gas. In Spain, the gas system is functioning normally. I would even say that it's working with full optimization of the infrastructures. The Spanish gas system that is operated by Enagás consists of six regasification plants, nearly 12,000 km of high-pressure pipelines with 19 compressor stations, three gas underground storage facilities, and international interconnections with Algeria, Morocco, Portugal, and France. Let me provide you with some specific data. We are maintaining all planned ship supplies and deliveries concerning LNG. Also, these storage facilities are fuller than usual at this time. We are about to finish the winter season. Right now, we are standing at 72% of storage.
All this enables us to rest assured in the current situation. Regarding our international business, all of our affiliates are operating normally. They are contributing to the supply security in their respective countries, and all of them have implemented contingency plans against COVID-19 in coordination with Enagás in order to ensure the business continuity, so in the presentation, you will find additional details of the situation in each country and subsidiary, and finally, and as I have said before, another of our priorities in the face of the current situation is our social commitment. Our aim is to contribute as much as we can to mitigate, as far as possible, the economic and social impact of COVID-19. We are concerned about people's health and safety as well as their well-being and peace of mind.
For that reason, and above all, we at Enagás remain firmly committed to employment, especially in situations that require top efficiency of our facilities as the ones we are showing right now. We are also keeping contracts and expediting payments to our suppliers of critical goods and services to contribute to maintaining our activity and employment as far as possible. In this complex situation, we are also intensifying the control plan and savings in general expenses, eliminating anything that is not essential to the business continuity and also to the maintenance of current and future activity and employment. We are also carrying out some solidarity initiatives with the essential aim of helping alleviate the negative effects of this health crisis on society, especially on the most vulnerable groups. First off, we are collaborating with the public authorities on initiatives to tackle this situation.
Specifically, we have made a donation that was approved by the board of directors within the framework of Royal Decree on the State of Alarm. So we're saying we made a donation of EUR 2 million to the state through the account specifically opened at the Bank of Spain in order to contribute directly to dealing with this public health emergency situation caused by COVID-19. Also, we have joined the emergency appeal called Red Cross Responds that was launched by the Spanish Red Cross to provide health products to families in a situation of vulnerability to coronavirus. We have also launched the urgent call for Positive Energy+ startups. This is a pioneering initiative in Spain that we have fostered together with other energy companies to mitigate the impact of COVID-19 through innovation. In forthcoming communications, we shall provide you with further information on this matter.
We are also carrying out specific actions in regions and municipalities where we are present in accordance with our line of social action by implementing initiatives such as guaranteeing food to families who are extremely vulnerable. We are also providing mobile handsets to nursing homes to facilitate communication of senior people with their families, with also donating computer equipment to help reduce the technology divide between children, or we're also donating personal protective equipment for use by the emergency service crews. And all this is done in coordination with the city halls, with the regional governments, or with the relevant regional authorities in the regions where we are working. Likewise, the affiliates of Enagás have also launched initiatives to help and collaborate with public and health authorities in the countries where they are present. Now, let me quickly summarize the highlights of Enagás' results during the first quarter of 2020.
The presentation with all the relevant information and figures is available to you since first thing this morning. I will refer to the highlights for the period plan. The results of the first quarter are in line with the target set for the entire fiscal year. We reported, as you can see, an after-tax profit of EUR 119.1 million. There was an increase in profits, 14.7%, due to the good performance of our EBITDA, in which we include, of course, the results of our affiliates or investees, and also to the fact that we had a non-recurrent positive result in the amount of EUR 18.4 million due to the positive exchange differences generated by the purchase of dollars for the acquisition of phase II of Tallgrass. We also have a high level of liquidity, and we keep a solid financial structure with no significant debt maturities until 2022.
At the closing of the quarter, the company's liquidity, that is, our cash and undrawn credit line, amounted to over EUR 3 billion, which gives us a solid and comfortable footing in a highly complex environment. Let me also remind you that both Standard & Poor's and Fitch have confirmed Enagás' rating at BB B+ with a stable outlook, in line with other similar companies and with other European transmission system operators, or TSOs. With regards to the development of our international investments, the news here is that the take-private transaction for Tallgrass Energy was approved last week at the company's general shareholders' meeting, which was held on Thursday the 16th. With this transaction, as planned and as we already informed you, Enagás has increased its indirect stake in Tallgrass Energy up to 30.2%, with a total investment in this project amounting to $1.623 billion.
Furthermore, and despite the challenges posed by the current COVID-19 crisis, the Trans Adriatic Pipeline, TAP project, as we call it, is now 94.1% complete. We have also completed the laying of the underwater gas pipeline between Albania and Italy, which is critical for this project. This operation has already been successfully completed. With regards to the South Peruvian Pipeline, the open arbitration procedure at the International Centre for Settlement of Investment Disputes is following the normal procedural course. As you were informed, Enagás filed the lawsuit on the 20th of January, and now it's up to the Peruvian state to submit the statement of defense. As for the evolution of natural gas demand in Spain during Q1 2020, total demand has come down by 2.4% at March the 31st.
In the first week since the State of Alarm was declared on March the 14th, we observed a slight effect on the demand for gas by businesses and SMEs, which are a significant portion of our market, so industrial demand has been affected mainly since March the 30th, when all non-essential activities ceased, so far this year, total demand in Spain has come down by 5.4% compared to the same period last year. Nevertheless, there's a specific piece of information of last week we observed for the very first time since the onset of the State of Alarm an increase in the demand for industrial gas compared to the previous week, so most certainly, this is due to the fact that last Monday, the elimination or the repeal of the decree that obliged non-essential companies to work was repealed.
So now we see many companies that are demanding more gas, and we will see that same trend in the upcoming weeks. So at Enagás, we believe that ecological transition continues to be a priority, a top priority, because it's going to be one of the bases for recovery. Why are we saying so? Well, because ecological transition is also a matter of paradox, as well evidenced right now. And there are many data that were published and that provide further evidence on this. Secondly, because promoting decarbonization realistically and firmly, always guaranteeing energy security, is going to be, no doubt, one of the European Union's pillars in order to walk out of this crisis stronger. At Enagás, we continue to be committed to renewable gases such as hydrogen and biomethane, which we promote through our subsidiary called Enagás Renovable.
This is a commitment that has also been undertaken by the Spanish government two weeks ago. The Ministry for Ecological Transition and Demographic Challenge, as a matter of fact, launched a preliminary public consultation for the drafting of the so-called Renewable Hydrogen Roadmap, which is going to be a key tool for its deployment and development in Spain. And let me share this with you. We are now working on a very specific project that we have launched recently at our Cartagena Regasification Plant in the Mediterranean in order to produce renewable hydrogen and inject it into the internal network of the plant, mixing it with natural gas for self-consumption by the terminal, thus reducing the carbon footprint markedly. Based on the information we have, this is the first pilot project for injecting green hydrogen into a gas network in Spain.
Thanks to our commitment to sustainability so far this year, and this should be underscored, we have been recognized once again for our role in the energy transition. Enagás has been included in the CDP Climate Change A List, and we have obtained the highest rating in our subsector in this Climate Action Index. As you know, however, we understand sustainability in a broad sense, and our commitment goes far beyond decarbonization and environmental management. In this quarter, we have been included for the second year running in the Bloomberg Gender Equality Index, among the 325 global companies that are most committed to transparency in gender information and the promotion of equality. Likewise, we have obtained the Top Employer seal for the 10th consecutive year, which recognizes Enagás as one of the best companies to work for.
Another important topic with regards to shareholder remuneration on the date of presentation of these results, we maintain the dividend payout policy that we communicated to you in February when presenting the annual results for fiscal year 2019. Dividends are of utmost importance to our investors and therefore to the company. The cash flow generation that we expect in the forthcoming years and that you're aware of, including adverse stress tests, allows us to uphold our commitment to the dividends announced in our last strategic presentation in February. And in summing up and by way of conclusion, let me share the three main points. Well, the results we are presenting for Q1 2020 are in line with expectations.
Second, we are now in a situation in which our priorities are first, the safety and health of people, second, to continue providing an essential service to society normally, and third, to contribute as much as possible to mitigating the economic and social impact of this health crisis. So this is what we are now working on. Third, we have conducted several internal stress tests, both technical and financial, and the data available to us today confirms that we can meet all of our commitments. The company is technically and financially sound, and it also has solvency and liquidity, all of which allows us to face the situation somewhat calmly, rigorously, but also with peace of mind. Thank you for your attention. And now I would like to invite you to ask any questions you may have. We said before that we are all connected telematically.
We are not physically in the same place. If due to time reasons or for connection reasons, any questions remain unanswered during this conference call, the investors relations department is at your disposal today at any time in order to address any inquiries you may have. As usual, we will try to answer your questions with as much detail as possible. Thank you very much.
Thank you very much, Mr. Chairman. Ladies and gentlemen, if you wish to ask a question, please press asterisk one on your telephone keypad. Let us remind you that you have to press asterisk one on your telephone keypad if you wish to ask questions. The first question is by Fernando Lafuente, Alantra Equities. Please go ahead. Fernando Lafuente, you have the floor, please. Well, it seems that his microphone is muted.
Hello. Can you hear me now?
Yes, yes, we can.
Good morning. I hope that you are all well. I have three questions, very quick questions. The chairman has given quite a lot of information about the gas system performance. Could you please tell us the impact that you foresee since the outbreak of COVID-19? I'm talking about its impact on the performance of the gas system. Do you think that regasification plants have to take special measures, especially those that are working at full blast? Second, I have a question about the impact on non-recurrent profit. What do you think about RCS this year and variable rates in the regasification system? And third, I would like to ask you a question about Tallgrass. After the impact of oil prices in the United States, I would like to know whether you expect any operational impact in the company given Tallgrass operating outlook.
Thank you very much for your question, Fernando Lafuente. If you could allow us a couple of minutes, we will get back to you with an answer.
Okay. Thank you, Fernando Lafuente from Alantra for your question. Let me answer quickly to all three questions. First of all, with regards to the contingency plan, its impact on operations has been null. Of course, we had to implement a number of technical measures as well as other measures that I did not have time to elaborate on, and that's the reason behind that. But our high-pressure gas network is working fully, the same as all six regasification plants. They are working at full blast at this point right now. Because of the global market condition, we are receiving 2/3 of the gas that Spain requires in terms of LNG, and another third is being received through gas pipelines.
So all international networks are working properly. In the first three months of this year, we re-exported gas to France and Portugal. We have flows both ways usually, but we are talking about 2,000 GW more net that we transported from Spain or that came into Spain through gas pipelines and then was exported. So the impact on operations, fortunately, is null. This is very important because let us remember that our income scheme means that we have to place all of our infrastructure at the disposal of our clients. Then the price of gas can go up or down, but actually, we are particularly affected by the fact that all of our facilities must be fully operational. From the supply security standpoint, we are also maintaining our underground storage levels.
We are keeping high gas storage levels, which enables us to rest assured if in the upcoming months, outside of Spain, we find any disruption in the gas production and transmission network. So that's the answer to the first question as to the impact of demand on regulated services in Spain. The impact is small, as you may remember. We have some payment schemes that are tied to demand, but about 1% or less than 1% of annualized demand can account for an impact of about a part of millions less, all in all. So if demand goes down by 5%, 8%, or 10% in the entire year, that could have an impact of a couple of millions of Euros, EUR 2 million approximately , but you can see objectively that its impact on the company's overall results and profit would not be significant.
On the other hand, we should not forget, as I mentioned during my presentation, that we are making specific efforts right now in order to reduce as far as possible our general expenses, those that are not essential to our activity, in order to reach a balance or in order to offset any negative impacts. From this viewpoint, demand, therefore, is not a significant negative factor as for Tallgrass, but evident that in the United States and globally, there has been a sharp drop in oil prices as a result of the outbreak of coronavirus and also due to low demand for products in some of the parts of the world, and also due to some supply reasons for technical factors. Tallgrass Energy, more than 70% of all the contracts held by the company are take-or-pay.
These contracts are set at specific prices, and therefore, they do not pose any significant impact. On the other hand, the company's senior management carried out a number of stress tests for this fiscal year, and they came to the conclusion that they have enough liquidity. We therefore understand that the company can keep its results without much of a problem. We should also keep in mind, especially if we are, of course, impacted by news from the previous day. In this case, we are talking about a reduction in the number of forward contracts, and also we are seeing some storage issues.
However, all the data we have, and according to the market consensus and according to analyst data, especially the data published by Bloomberg about 10 or 12 days ago with an outlook for this year and the first quarter of 2021, refer to a gradual recovery of markets and the prices of gas and oil, mainly in the United States. Therefore, from this perspective, we believe that impact on Tallgrass Energy's financial statements will be small, and therefore, we do not believe that this will have a significant impact on the medium or long term, even with regards to 2020 annual results based on the data analyzed at the last board meeting last week. We believe that this company can actually endure this impact well.
Perhaps I'm taking too long in answering your question, but let me remind you that Tallgrass Energy is geographically located, given the characteristics of its business, as one of the most profitable basins that can best endure the oil and gas prices in the United States. Therefore, this provides you with specific information showing that Tallgrass Energy stands out when compared to other peers in the sector.
Thank you very much, Fernando, and now let's give the floor to other questions.
Okay, thank you very much, Mr. Chairman.
Next question, Sergio.
The next question is by Javier Suárez from Mediobanca.
Good morning, everybody, and I hope that you and your families are safe. I have a couple of questions after Fernando's questions. In connection with Tallgrass Energy, you mentioned that the company has contracts set at specific prices.
Should we expect an impact on the 30% of volumes that are not under contract? Actually, my question, let me rephrase my question. The question is, what about the break-even point of the basins where Tallgrass operates in order to understand how this price scenario can have an impact on your business? Because this is quite a strange scenario. On the other hand, how could Enagás endure a scenario where Tallgrass could face more difficulties? That is, could you describe the stress test that you conducted? You said that you have a discretionary CapEx of EUR 1.6 billion or EUR 1.65 billion as part of your CapEx. Could you please tell us how much of your discretionary CapEx could actually resist that impact? So that's the first question. The second question is the following.
Mr. Chairman, could you provide us with your best estimates as for the evolution of gas in 2020, given the current situation characterized by COVID-19, and the third question, with regards to GSP, I believe that the arbitration procedural calendar is being followed, but I would like to hear more about how that is evolving. Thank you.
Okay, thank you, Javier, for your question. Again, we will come back to you in a couple of minutes after we discuss the question internally. Thank you, Javier Suárez, from Mediobanca, for your question. I would like to answer all three questions. As for the first question, you asked about the take-or-pay of about 70% of our contracts and what would happen with the remaining 30%. Okay, let me throw more light on this.
In principle, that 30% that is not take-or-pay are contracts that last for about three or four years on average. These contracts, in the upcoming months or years, will fall due naturally, and therefore, the senior management of Tallgrass Energy expects that they will be renewed. We will have to see under which terms and conditions, but we should not expect an immediate impact in May or June. We will have to wait and see. During the latest board meeting at Tallgrass Energy, the senior management presented some outlooks for the end of the fiscal year, and they believe that all in all, they will be able to maintain the company's 2020 targets. This is connected to another question made by Javier Suárez. As for the average break-even with regards to the basins where Tallgrass Energy works, we're talking about $27-$28 approximately of break-even.
So if the Brent price that we are using as the measurement standard, these basins are under good conditions to keep on operating. It does not lose sight of the fact that if prices go down, that causes new projects that could be performed in the geographical environment where Tallgrass operates that could impose some competition today are at a full halt. Therefore, it is true that the situation enables Tallgrass to operate by contrast with other companies in other geographical locations. So the conclusion is that at this point, we understand that, and let me therefore answer the second part of your first question. We believe that we are ready to face any fluctuations in Tallgrass's results with no significant impact on our accounts.
I'm talking about fiscal year 2020, and then we will have to see what happens in forthcoming months, how the oil and gas sector evolves in the United States in 2021 and 2022, but as for this year's data, they are maintained. As for fiscal 2021, I believe that I mentioned that during my presentation, the market consensus published by Bloomberg reports prices or the price of gas on a BTU basis that are correct from our accounts perspective. The second question has to do with estimates of demand in Spain. Okay, I can say the following. Usually, we are quite accurate on our estimates as analysts. Now, we expected demand of gas this year, and this was a conservative approach.
We thought that it was going to be flat because last year there was an increase of 14%, and therefore, we thought that this year actually it was going to remain at the same level. The impact of coronavirus is, well, quite significant in March and April, but let us not forget that about 2/3 of Spanish demand, and even a bit more industrial demand, which accounts for 60% of demand, and then what we call domestic and commercial demand, contains a portion of demand by small and medium-sized companies. All in all, we can say that industrial demand in Spain accounts for 2/3 of gas demand. Therefore, this is perhaps the highest in a European country, and this is explained by our geographical location, the country's surface, and number of inhabitants. In Italy, perhaps this goes above 50%. In our country, for good or worse, it's 20 at most.
So those thirds of industrial demand are being quite sensitive to all the measures that have been adopted in all countries, or lockdown measures. So as far as these lockdown measures are somehow eased, we will notice an increase of demand for industrial gas. Perhaps there will not be a significant increase in household demand, and as for the demand of gas for electricity, you know that electricity here does not depend so much on gas. Rather, it depends on other factors such as rain, wind, or solar energy. We believe, therefore, that before year-end demand will go down slightly, but we do not expect such force to be too significant. Having said that, and let me finish this part of the question, you know that gas demand per se does not affect us much. There are also some other advantages arising from this fall in demand.
Right now, spot prices in Spain are the cheapest in history. Yesterday, we hit a historical low of EUR 6.9 per MWh. As system operators, we can therefore store gas in our storage facilities at a very good price. This situation was never observed before. So there are always pros and cons. The upside of this situation is that gas is reaching Spain at good price conditions. We are storing gas at good price conditions, and all this leads me to think, and of course, sorry for the aside, we are actually making a forecast without knowing exactly the health repercussions that COVID will have in all countries. But today, data show that there has been a slight improvement in figures. There are three major figures to be highlighted. There are not many infected people.
Actually, we should keep in mind the number of people under intensive care, the number of dead people, and the number of people who have overcome COVID-19. Right now, we have about 50,000 or 60,000 people who have already been cured. If we take into account hospitalization and intensive care rates, we see that they're going down. Therefore, we can be somewhat optimistic for the forthcoming months, and we can say that industrial demand might rally in the forthcoming months. We can't say exactly when, but it seems that things will move in that direction, and as for the third question, GSP, well, Enagás presented all of its allegations in January, and now the Peruvian state government is preparing the statement of defense, which should be filed in the forthcoming weeks. We have to wait until that time.
However, the procedure that has been approved by the World Bank and ICSID. I believe that this happened at the beginning of September. There is also a right by the state of Peru to provide another statement of defense. So we shall keep you informed as things evolve, but right now, we do not have any additional data as to this procedure. As we know, all countries at this point, or virtually all countries, are under lockdown situations. All schools and government agencies are right now closed, and that's why there has not been any news in this regard in the past weeks. And I believe, Javier, that I have answered all of your questions.
Thank you, Mr. Chairman.
Sergio, please, let's go on with the next question.
The next question is by Alberto Gandolfi from Goldman Sachs. Thank you.
Good morning, and I hope that you are all doing well, and so are your families. I have specific questions about some topics that have already been discussed. As for the dividend payout policy, could you please describe better the stress test you conducted on volumes and the dividends received from international subsidiaries or investors? How can we quantify the soundness of such dividends? Because in your statement, you're saying that the dividend payout policy should be maintained. However, Mr. Chairman, you stated that you are going to keep the overall dividend as well as the overall dividend payout policy. Could you please shine more light on this to, well, see how solid the dividend is?
In terms of volume in Spain, do you think that we may run the risk of a new tariff deficit, and should that be the case, which regulatory mechanisms would make it possible to observe that situation? And with regards to Tallgrass, it's quite clear that only 30%, or that every year, 25% or 30% of the business must carry out some renegotiation in this regard. Could we expect a drop of 10% of volumes and $10 in oil barrels? Because I believe that 30% is concerned with crude oil. Is that right?
Well, thank you very much, Alberto, for your question, and we will get back to you in a couple of minutes. Thank you. Well, thank you very much, Alberto Gandolfi from Goldman Sachs. So let me answer all your questions.
As for the first question concerning the dividend payout policy, well, the truth is that after having conducted very tough financial and technical stress tests, and now I'm not going to elaborate on this, though, we believe that the cash flow global stability of our company will enable us to maintain our dividend payout policy, which, on the other hand, was based on a prudent approach for the fiscal period we are analyzing today. We do not believe that all the latest developments will significantly affect our company. We should take into account that as a TSO, we have our income scheme that is closely tied to specific standards. We, for example, place a priority on keeping the system operational. So supply and demand are somehow away from having a strong impact on our P&L account. We believe, therefore, that we can keep our dividend payout policy without a problem.
As for a potential tariff deficit in the Spanish gas system, I should highlight the following. For the past one year or two years, the system as such has delivered excellent results, excellent income, resulting in certain capital gains. Therefore, this is being used to offset the tariff deficit in the amount of EUR 1.2 billion that we had. As of March the 31st, we can say that this tariff deficit, pursuant to the law I just mentioned, should have been eliminated by 2030. However, given the current pace, it will be eliminated between 2022 and 2023. What I'm trying to say is that if, as a result of coronavirus impact and a delay in paying some customer costs, should there be an increase in such a deficit given our current performance, it would be absolutely possible to repay that deficit, not by 2022 but in nine more years.
Therefore, we could keep the system to all rates. And even though this does not depend fully on us, this is quite evident because it depends on a legal provision, we believe that the gas system's balance in the future is under control and that any surplus profit coming from the system vis-à-vis cost was actually enabling us to repay debt in the best-case scenario. In the worst-case scenario, we would just keep the initial calendar that we started in 2015, that is to say 2031. We, therefore, believe that this will not affect tolls and, as a result, the profit derived from the transmission or distribution system. As for Tallgrass, let me give you some relevant data. First of all, as Alberto asked us, this affects oil. We are talking about less than 50% or about less than 40% of the company's business.
On the other hand, as shareholders, we already considered in our 2020 scheme a conservative approach to the data that the senior management provided us with timely. We took, therefore, into account oil and the possibility of this raising some competition. Therefore, we decided to increase our prudent approach, taking into account this potential effect. That's what the senior management decided to do. Therefore, we do not expect this four-year contract renewal about 7% each year will have too strong an impact. In this case, we are not talking about a short-term contract that could be affected by daily price, but rather we are talking about a four, or three-year contract for transmission services. The prices and costs of these prices will be more tied to future forecasts rather than to daily developments. On the other hand, we transport gas. I'm talking about gas.
We transport gas associated to oil, but then we also have what we call dry gas or gas coming from other fields that have nothing to do with oil. This gas, which has the greatest portion on Tallgrass contracts, is not affected by oil price evolution. All in all, therefore, we believe that Tallgrass, with regards to these contracts, can, in the short or medium term, maintain the renewal of contracts based on the general guidelines put forward by the senior management based on a prudent approach. We believe that this is a greater-event guarantee coefficient. So we can say that today, I'm not taking into account the short term, but rather in view of how the market will evolve before year-end in the United States, especially before 2021, we have certain peace of mind with regards to this potential evolution.
I believe that I have thus answered all three questions.
Thank you very much, Mr. Chairman.
I believe that we have just one final question, Sergio.
Yes. This is the last question by José Ruiz from Barclays.
Yes. Good morning, everybody. And I hope that you're all well. I have some quick questions. During your discussions with the CNMC with regards to regulations on gas in the long term, have you heard about any force majeure clauses or have you discussed any such clauses? If we are in a force majeure situation, are you safeguarded against the potential evolution of RCS? On the other hand, I would like to have further details about the Cartagena plant. Is this a pilot project with industrial clients, or are we talking about a steady investment?
The third question is the following, do you have any estimates as to the working capital you will be financing before year-end?
Okay. Thank you, José Javier, for your question. Again, we will get back to you in a few minutes. Yes. José Ruiz from Barclays, thank you very much for your questions. As for the first question concerning our approved regulations in force for the next seven years, in principle, there are no force majeure clauses or potential force majeure provisions. Should that be the case, we would have to explain which such force majeure clauses are.
However, I should say that the first Royal Decree that, about months ago, referred to a potential deterioration of payment of tolls by certain end customers or the potential entitlement to reduce their use commitments, it was expressly stated that this potential lack of income by the gas system would be offset through the state's general budget. So, in conclusion, there's no provision whatsoever in our regulations in this regard. However, since the federal government realized that they could have an impact on the system's income, and therefore they decided that this should be charged to the state's general budget. Therefore, the overall system, not only Enagás, are reasonably well protected, taking into account that we are going through a force majeure situation or a lockdown situation where many businesses and companies are not operating. The state therefore understands that these measures are per se temporary.
As for the Cartagena plant, we are not talking about sending hydrogen gas to our industrial clients. As part of our pilot project, we intend to produce synthetic gas, that is to say hydrogen produced through electrolysis processes, in order to mix it with our own gas for the gas consumed by plants by way of power in order to operate. This is already up and running. This is a scheme that is already up and running with an investment scheme that is absolutely viable because we're not talking about large figures. Our intent is to extend this to all of our regasification plants so that at each plant, CO2 impact can be neutral or nil. This is very important because, based on our industrial and engineering experience, in order to meet zero effects, we have to set neutral impact targets on a facility-by-facility basis.
Therefore, our goal in the coming years is to extend what we are already doing successfully at the Cartagena plant to all other plants. And in closing your question, this means that perhaps 10% of the gas that is self-consumed by the plant will not be CH4, but rather it's going to be hydrogen produced on-site. If we are able, and I believe we will, to extend this to our regasification plants in Spain, this will have a very good positive impact on Enagás' CO2 output as a company. As for our estimates with regards to the working capital, in our cash flow or in our budget, we have a working capital fluctuation of about EUR 80 million. This being a positive figure. I believe that I've just answered your question. And again, thank you very much, José Ruiz, for your question.
Okay. Okay. Thank you very much, Mr. Chairman.
Sergio, I believe that there are no further questions. Is that right?
In fact, there are no further questions in the Spanish room.
Okay. Thank you very much, Antonio.
Antonio, yes, you have the floor. No. Is there no further questions, Mr. Chairman? We've just formally closed this conference call. Should there be any additional questions, please remember that you can contact the investor relations department. Thank you very much for joining us today.