After a number of years with – historically – high operating results, both the gas volumes sold and revenues have decreased.
GRONINGEN, February 18, 2015 - Gas trading company GasTerra has published its figures for 2014 today. After a number of years with – historically – high operating results, both the gas volumes sold and revenues have decreased. The sales volume was 81,3 billion cubic meters (2013: 89.3), with a turnover of 19.5 billion Euros (2013: 24.3).
This decrease has two main causes. Firstly, the volume reduced due to higher average temperatures and the decision by the Dutch government to limit the gas production in Groningen to a maximum of 42.5 billion cubic meters. In addition, the average price level was below the level in 2013, especially in the summer months. The rates in Europe came under pressure due to a reduced demand for gas in combination with a larger supply of gas.
In the heating segment, the sales volume decreased due to the exceptionally mild winter temperatures. The electricity sector, traditionally a big buyer of gas, still prefers coal-fired to gas-fired plants – because of the low prices of coal and CO2. The increase in supply can largely be explained by the sluggish demand in Asia. This resulted in more liquid natural gas (LNG) becoming available to the European market.
Despite the suboptimal market situation, GasTerra does not want to call it a disappointing year. GasTerra's CEO, Gertjan Lankhorst: 'In 2014, we adjusted our business strategy to the changing circumstances with regard to the sale of gas from Groningen. Where market demand used to be leading, we now had to take a massive reduction in supply into account. Nevertheless, we have managed to offer our customers the best possible service, without compromising the fulfilment of our mission: value maximization of the gas offered to us.'
The gas industry is currently going through a period of turbulence. Earthquakes in Groningen, caused by gas extraction, forced the Dutch government to announce measures in January to improve the safety of the residents of the area and to compensate the damage caused. GasTerra is not only affected by this economically. Gertjan Lankhorst: 'The people living in the area around the Groningen gas fields suffer from damage to their property, they are insecure and afraid. The extraction of natural gas, which is bringing us so many social and economic benefits, also has its drawbacks, which is unilaterally and disproportionately affecting these people. We are very much aware of the fact that we are a company that is part of the chain that caused the damage. In our view, effective measures are required to dispell the feelings of insecurity.'
The motto of GasTerra's annual report is Energizing the Future. GasTerra is convinced of the fact that gas must continue to play a central role in energy supply in the near and distant future, both with a view to a guaranteed energy supply as well as it being an indispensable tool in the reduction of greenhouse gas emissions, in the short and medium term. For that reason, in 2014, GasTerra actively contributed to the necessary conservation of our energy supply by trading green gas, developing specific products such as wind-dependent gas supply and funding projects in the context of its CSR policy.
The annual report includes interviews with representatives of GasTerra's stakeholders, such as Kees-Jan Rameau (member of the Board of Governors of Eneco) and Jan Paul van Soest (environmental and sustainability expert, affiliated with the cooperative De Gemeynt). They both give their views on the current and future position of gas in the energy supply chain.
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GasTerra is an international trading company that buys and sells natural gas and offers gas-related services. The company has more than 50 years of experience and has a strong purchasing position. GasTerra serves an important part of the Dutch and European natural gas market. The company operates in a customer-oriented manner and promotes the effective use of natural gas and the development of new applications in the field of gas and energy. The company recognizes the importance of the transition to a sustainable energy supply and initiates projects in that context.