A new partnership for the Dutch energy supply

Against the backdrop of dwindling domestic gas reserves, the partnership between the Dutch energy company Eneco Holding N.V. and the German natural gas company WINGAS GmbH & Co. KG will further improve the security of the gas supply. From 2012 on, WINGAS will supply up to a billion cubic meters of natural gas a year to the Dutch energy company. A long-term supply agreement to this effect was signed in Rotterdam at the head office of Eneco, the Netherland’s third-largest energy company.

Unusual agreement

“The supply agreement between WINGAS and Eneco is valid until 2030. Entering such a long-term commitment is unusual on the natural gas market these days. Nevertheless, we are certain that with WINGAS as reliable partner and one of the main suppliers our procurement portfolio will meet future needs,” said Kees-Jan Rameau, Member of the Board of Management of Eneco Holding N.V., at the signing of the agreement. “At the same time, this contract gives us access to natural gas to provide long-term security of supply for our customers, to keep expanding our market position and to fuel our new gas-fired powerplants.” Eneco uses around seven billion cubic meters a year for its natural gas sales and powerplants. In addition to its operations in the Netherlands, the company also is active in Belgium, Germany, France and the UK.

Importance of secure supply

“The signing of this contract underscores the importance of a secure supply of natural gas, not only for the future, but also in the current situation on the gas market. We have succeeded in negotiating an attractive concept and conditions that address the needs of both parties,” WINGAS Chairman Dr. Gerhard König explained. “With this extensive supply agreement, WINGAS remains on course for success in Europe.” In addition to being one of the largest natural gas suppliers on its German home market, WINGAS also delivers natural gas to France, Denmark, Austria, the Netherlands, the Czech Republic and is particularly successful in the UK and in Belgium. WINGAS already has a 15 percentage share of the industrial market in Belgium and now is supplying the first customers in the reseller segment. In the UK the energy company focuses on the industrial and business markets and supplies over 60 major industrial customers in the chemical, pharmaceutical, paper and glass industries.“We want to continue to grow in Europe, and the Netherlands play a key role in our growth strategy,” König said when explaining the future direction of the company. This partnership with one of the largest Dutch energy suppliers provides a good basis for pursuing our strategy,” the WINGAS Chairman stated confidently. Overall, the joint venture of Germany’s largest crude oil and natural gas producer, BASF subsidiary Wintershall, and Russia‘s OAO Gazprom, sold around 30 billion cubic meters of natural gas in 2009. Eneco’s Board Member Kees-Jan Rameau also is positive about the partnership between his company and WINGAS. “The Dutch government wants to turn the Netherlands into one of the main gas hubs for North West Europe. Via the partnership with WINGAS, one of the leading suppliers of natural gas to North-West Europe, Eneco now has access to sufficient natural gas reserves to support this goal.”