GasTerra pulls out all the stops in exceptional market conditions

PRESS RELEASE

Groningen, 18 February 2022

Exceptional market trends meant that gas trader GasTerra traded more gas in 2021, at a significantly higher value, according to the company’s annual report published today. Revenues and purchasing costs more than doubled due to higher market prices. Traded volume increased from 41.6 billion cubic metres to 44.2 billion cubic metres. GasTerra played its part in ensuring that production from the Groningen field fell further, from 8.6 billion cubic metres to 7.8 billion cubic metres, in gas year 2020-2021. GasTerra also complied with agreements requiring low-calorific gas storage facilities to be filled in good time and to a sufficient level in the interests of security of supply.

Scaling down Groningen production and the GasTerra organisation, dealing with coronavirus and unprecedented price volatility: this combination of circumstances mean that 2021 can justifiably be called an exceptional year for GasTerra.

After the summer a whole new reality emerged with abnormally high price levels. The entire energy sector has had to cope with enormous challenges. The market situation has led to increased price, credit and liquidity risks in GasTerra’s portfolio. Although high prices pushed our revenue to more than 13 billion euros, purchase prices rose at least as sharply. The high prices raised questions about security of supply and the buffer capacity of the storage facilities.

Major steps have been taken in recent years to reduce gas production in Groningen and GasTerra will make every effort to continue its contribution towards this. GasTerra made sure once again in 2021 that the low-calorific gas storage facilities were filled sufficiently in the summer and that storage facilities and the Groningen field were used during the year in such a way as to guarantee security of supply for the L-gas market. The company also made sure that Nederlandse Aardolie Maatschappij (NAM) can comply with the instructions of the Minister for Economic Affairs and Climate Policy on gas production. As a Groningen company, GasTerra also sees and recognises the concerns and unrest among local residents brought about by gas extraction, damage claims and building reinforcements. Recent reports of a possible increase in Groningen production have exacerbated these concerns.

In the coming period, the situation will continue to be tense as we see how the gas market develops. GasTerra will carry on playing its part to the best of its ability and make every effort to leave a well-functioning gas market as its legacy as it winds down its activities.
GasTerra’s CEO Annie Krist comments: “This is a complex but also very worthwhile and challenging task that we are tackling together.”

GasTerra’s annual report is published on our website (https://jaarverslag2021.gasterra.nl). It is also available as a PDF file.

For any further information or explanations, journalists can contact Jan Hendrik Annema, spokesperson for GasTerra: +31 6 11005595 or jan.hendrik.annema@gasterra.nl