GasTerra's core business is the procurement and sale of natural gas. In the contracts that it signs, GasTerra endeavours to maximise the value of the Netherlands' natural gas reserves and their associated services. It also fulfils a public role with regard to the implementation of the Dutch government's Small Field Policy. This policy is aimed at promoting natural gas production in smaller gas fields in the Netherlands.
Dutch industry and energy suppliers form two of GasTerra's main customer groups. GasTerra is able to offer a variety of contract and pricing concepts thanks to many years of trading experience and to the flexibility granted it by the Groningen gas field. GasTerra strives to build solid business relationships with the private sector and to enter into agreements that reflect natural gas and its associated services' full value. Core values focus on results, improvements and customers.
Northwest European Gas Market Integration
The EU aims to integrate the European energy market to the fullest extent possible in order to provide customers with more choice and competitive pricing. GasTerra actively contributes towards integration with its ongoing product development in response to demand and the flexibility of trading options available on the TTF. Increasing numbers of domestic and overseas traders are using the TTF to build their portfolios for the Northwest European gas market. Pricing differences between the TTF and other virtual trading points in north-west Europe will continue to decrease.
Dutch small field policy
The Dutch government aims to allow Dutch society to capitalise on its own natural gas reserves to the maximum extent possible and to preserve the Groningen gas field as a strategic reserve. The Dutch government introduced the Small Field Policy in 1974 to stimulate gas production from the relatively smaller gas fields. An essential component of the Dutch Small Field Policy is that it guarantees a buyer for gas produced from these small fields. To achieve this the NV Nederlandse Gasunie was obliged to procure this gas at competitive prices in preference to gas from other sources. This requirement was subsequently passed onto GasTerra following Gasunie's division into a transmission system operator and a trading company, Gasunie and GasTerra respectively, in 2005. The obligation to transmit this gas has since been passed onto the transmission system operator – Gasunie Transport Services (GTS).
Over the years, this policy has resulted in dozens of gas fields being added to Dutch gas reserves. The small fields have since produced a larger share of the Netherlands' gas requirements than the far larger Groningen gas field. The peak in small field production came in 2000. Since this time, there has been a gradual drop in output. It is anticipated that this decline will continue in the years ahead.
Environmental Plan for Industry
GasTerra established the Environmental Plan for Industry (EPI) to help its industrial customers to improve their energy efficiency, reduce their emission levels and to do business more sustainably. In so doing, GasTerra promotes the efficient usage of natural gas.
The EPI was established to help industrial customers use energy more efficiently, especially natural gas. Projects have been carried out in hundreds of companies and even across entire sectors, e.g. the glass and paper industries, that have resulted in savings between 10 and 50%. An aspectof an EPI project is, for example, the implementation of PEMS – a proprietary product and energy management system developed by GasTerra. It even allows a company's entire energy usage profile to be examined. EPI support also helps comply with industry's energy and environmental reporting obligations.