EDF in deal to buy LNG from Spain’s Gas Natural

Thursday, 14 February 2008

The French company, which already has agreements to buy LNG from Qatar, said the LNG volumes amounted to four billion cubic metres of gas and would be delivered from April 2009 at a rate of one billion cubic metres per annum.

EDF said the agreement moved the company closer to its objective of increasing its gas business in Europe to 45 billion cubic metres by 2015 and complements its existing LNG positions.

“The contract is part of EDF's strategy to strengthen its natural gas positions, and helps secure the group's supplies of natural gas so as to offer its customers a range of different energy sources,” the company said.

EDF has two supply contracts with Qatar’s RasGas, one through the EDF subsidiary, Edison, for the planned import terminal at Rovigo in Italy, and the other through the Zeebrugge LNG import terminal in Belgium.

The French company is one of several growing integrated energy groups in Europe which have moved into LNG. Gas Natural's LNG business is underpinned by an agreement with Spanish energy company Repsol to cooperate in liquefaction and regasification businesses.

EDF’s activities cover all branches of generation, transmission, and energy trading. The company has mostly nuclear and hydroelectric power plants in France. Its transmission and distribution subsidiaries operate 1.25 million kilometers of overhead and underground electricity lines.