E.ON Ruhrgas main customer of Norwegian gas, E.ON Ruhrgas
Release Date: 2010-08-25
Schäfer at ONS trade fair: Making long-term supply contracts future-proof"German-Norwegian gas ties show how security of supply is guaranteed by entrepreneurial commitment, even in a difficult economic environment," said Klaus Schäfer, the new CEO of E.ON Ruhrgas, at the Offshore Northern Seas 2010 (ONS) trade fair in Stavanger today. "European gas markets are on the move. The Continent is experiencing a huge oversupply of gas and a price collapse on spot markets. One cause is undoubtedly the decreased consumption in the wake of the worldwide economic crisis. But much more significant are the far-reaching shifts on global gas markets."
Gas oversupply and lower demand were putting pressure on prices, Mr. Schäfer added. Consequently, flexibilities in gas procurement had to be used and contracts adapted to the current market situation. "In the negotiations with major gas producers, we have to make long-term supply contracts future-proof and readjust key elements so that we can respond flexibly to the prevailing market situation," Mr. Schäfer said in a press statement. “Now is the right time to lay the tracks for future market developments and lastingly secure Europe's gas supplies.”
E.ON Ruhrgas has a procurement strategy that rests on three pillars. Apart from long-term supplies of pipeline gas, the company has successfully started to set up its own gas production, not least in Norway, and is involved in LNG business as the third pillar. Norwegian gas is a central element of this supply portfolio and an integral part of the company's strategy of diversification. The existing contracts with Norwegian gas producers last until 2029.
As the largest customer of Norwegian gas, the company imported almost 15 billion m³ of gas from Norway in 2009. This corresponds to 27 % of the E.ON Ruhrgas supply portfolio. In all, Germany receives about a third of its gas from Norwegian sources. For E.ON Ruhrgas, Norway is therefore a key supply country and strategic partner with great potential for Germany's and Europe's security of supply.
As one of Europe's leading importers, E.ON Ruhrgas has an attractive mid and downstream portfolio. The company taps new sales markets and invests in new application technologies, be it in the heating market or in the gas mobility sector. The company also considers that the use of gas in power generation offers great potential throughout Europe for energy efficiency and climate protection.
"Our own gas production is a growth segment for us. E.ON Ruhrgas Exploration & Production is a dynamic company with a strong base and promising prospects. Since the commencement of our commitment in 2003, we have become established on the market within a brief space of time. Thanks to our stakes in gas reserves in the British and Norwegian North Sea and in Russia, our annual gas production amounted to approx. 4.4 billion m³ in 2009. And it is showing an upward trend," the CEO reported.
Together with its Norwegian partners, E.ON Ruhrgas has for many years also been pursuing cultural and social projects going well beyond the gas business itself. For example, the E.ON Ruhrgas scholarship programmes, the German-Norwegian youth forum as well as art exhibitions and concerts are a firm part of German-Norwegian cultural relations. Reliability, commitment and creativity are the success factors of the partnership between E.ON Ruhrgas and Norway that has thrived for over 30 years now.
| Type: | NORMAL |
| Company: | E.ON Ruhrgas |
| Country: | Germany |