Natural Gas Supplies
Market volatility, cold spells, potential supplier breakdowns ̶ whatever happens, ENGIE guarantees its customers a natural gas supply throughout the year, without service interruptions. To do this, the Group relies on a supply portfolio considered among the most diversified in the world, and its continuous presence throughout the entire gas chain.
The challenges of natural gas supply
The global market in natural gas is characterized by:
- a constantly growing demand, assessed at + 1.4% a year in the global consumption of energy,
- a high degree of concentration of the reserves, largely in areas isolated from the places of consumption,
- high transportation costs, which account for a significant part of final gas costs.
In 2012, over 60% of the natural gas consumed in the European Union was imported: from Russia, Norway, Algeria, etc. By 2030, this dependence is expected to rise to almost 66%.
The benefits of diversified supply
To guarantee a natural gas supply at a competitive price to all its clients, ENGIE employs a strategy of diversifying its supply sources.
Strong partnerships forged over several decades enable ENGIE to be a leading gas buyer among the large global producers, with whom it signs mostly long-term contracts.
The Group thus avails of the most diversified portfolio in Europe, with more than ten supplier countries, and in which the main supplier only represents around 20%. These long-term contracts cover almost 75% of the Group needs in Europe.
ENGIE, a major energy business player in Europe
Apart from long-term contracts, ENGIE intervenes directly on the short and medium-term markets through its GDF SUEZ Trading subsidiary. Use of the flexible terms inherent to long-term contracts and the capacities contained in transport and storage infrastructures allow the Group to adjust its supply in accordance with needs while optimizing the entire portfoliio.
Secure supplies: strong structural and industrial assets
- ENGIE is an integrated player in the gas chain. The Group guarantees all the stages of gas transport logistics. This position gives it the flexibility necessary to dynamically manage upstream and downstream gas flows.
- As no. 1 gas buyer and no. 1 transport and distribution network in Europe, ENGIE participates in major projects with all the leading operators. In June 2010, the Group joined the Nord Stream gasoduct project, which will link Russia to Europe over the Baltic ̶ an important asset in securing supplies. The second section of the Nord Stream gas pipeline was inaugurated in 2012.
- ENGIE is a major liquefied natural gas (LNG) player. LNG makes it possible to exploit production areas not served by gasoducts. In 2013, ENGIE signed a contract with the Chinese company CNOOC for the sale of 2.6 million tons of LNG between 2013 and 2016, strengthening the Group’s development in the Chinese LNG market.