Russia’s Gazprom and BASF subsidiary Wintershall teamed up about 20 years ago in order to sell and market natural gas together: the aims of the two partners were and remain to supply natural gas on competitive terms, to optimize its use and to secure its supply in the long term. WINGAS became an initiator of competition on the German energy market, which was shaped by monopolistic structures until just a few years ago, and will continue to help shape this market in future.
Success in Europe
About 45 percent of sales are now generated in neighboring European countries. The company plans to increase this figure even further. Alongside the markets in the UK and Belgium, the company is focusing on achieving above-average growth in the Netherlands. It laid the foundations for this growth at the end of 2010 by signing a long-term supply agreement with the third-largest Dutch energy supplier Eneco. WINGAS supplies the company with up to one billion cubic meters of natural gas a year. The supply agreement between WINGAS and Eneco runs until 2030.
WINGAS strengthens supply security
Most of the Member States of the European Union are becoming increasingly dependent on imports of natural gas. WINGAS meets its demand primarily by means of long-term supply agreements. The contracted volumes mostly come from Russian sources and are supplied by OOO Gazprom export. WINGAS has been procuring natural gas from Russia via various different import routes for several years now, but most of the gas comes via the northern Jamal-Europe pipeline which goes through Belarus and Poland.
The supplies from Russia are supplemented with gas from the North Sea. To this end the company has increasingly been taking advantage of the procurement possibilities of the Western European spot markets for some time now. Overall, the company’s long-term and diversified procurement strategy contributes to a secure supply of natural gas for WINGAS customers until the year 2036 and beyong. Alongside the new sales opportunities emerging from the liberalization of the European natural gas markets, the company is taking advantage of short-term trading: the existing spot markets such as the Zeebrugge Hub in Belgium, the British National Balancing Point (NBP), the French Point d’Echange de Gaz (PEG) and the Dutch Title Transfer Facility (TTF) are being used to optimize the company’s own trading activities. WINGAS has also been active in trading in Germany since 2007.
The Nord Stream natural gas pipeline was built in order to further strengthen supply security and to meet the growing demand for natural gas imports in Germany and Western Europe in the long term. The Nord Stream pipeline starts at the Russian town of Vyborg and runs 1,200 kilometers through the Baltic Sea to the German Baltic Sea coast near Greifswald. WINGAS and OOO Gazprom export have already agreed the first deliveries via Nord Stream. WINGAS plans to procure up to 9 billion cubic meters of natural gas a year through the new Nord Stream pipeline over a period of 25 years.
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