Gas Natural, Spain's largest gas utility, is facing further irksome delays to its initial public offering (IPO) for Enagas, its distribution unit, because of the government's sloth in approving the necessary energy market regulations.

Antonio Brufau, the chairman of Gas Natural, said an IPO for Enagas now looked unlikely before the end of this year, or even early next year. Gas Natural had originally hoped to float the unit in January 2001.