Eneco and GasTerra conclude long-term gas supply contract

Today, GasTerra and Eneco announced that they have concluded a long-term agreement for the supply of natural gas to the Rotterdam-based energy company. The contract enhances Eneco’s ability to provide optimal, long-term supply for its customers. GasTerra will supply the gas via the TTF virtual trading point.

During the past years, it was customary to only conclude short-term contracts on the Dutch natural gas market. Eneco has made a deliberate choice to deviate from this practice by also opting for long-term commitments.

With this contract, Eneco further reinforces its gas strategy, of which the security of sufficient gas for its customers and gas plants from different resources forms an important element. The gas will also be used as transition fuel as part of Eneco’s strategy to increase sustainability.

Kees-Jan Rameau, member of Eneco’s Board of Management, is very pleased that Eneco has also secured long-term gas deliveries from GasTerra: “The guaranteed supply of Dutch natural gas by GasTerra forms an important part of our gas portfolio that is needed to serve our customers, to operate our gas plants and to further expand our market position. It ensures that we can actively pursue our strategy aimed at increasing sustainability, part of which is the use of gas plants as a backup facility for wind energy.”

From GasTerra’s point of view, this agreement fits the company’s aim to further diversify its product range on the liberalised market for natural gas. Over the past years, GasTerra has played a role in the turbulent development of the TTF. For Eneco, the main advantage of the long-term contract is the combination between delivery on the TTF and the long-term commitment of a reliable supplier.

In the eyes of Jacob Kielman, Chief Commercial Officer at GasTerra, the agreement supports his opinion that, also on the domestic market, there will be room for long-term agreements. “In addition to pricing and flexibility, security of supply is of crucial importance to energy companies. GasTerra can provide that security since the Groningen gas field reserve is sufficient to supply domestic and international customers with natural gas for decades to come.”