Essent and Bayerngas establish Novogate GmbH
The Bavarian gas company Bayerngas GmbH and Deutsche Essent GmbH, the German Essent daughter, established the joint venture Novogate GmbH. The joint venture has been approved by the European Cartel Office. Novogate will start up a joint platform for gas delivery to public utility providers from its two offices in Munich and Düsseldorf.
Essent and Bayerngas establish Novogate GmbH
Novogate will offer public utility services various types of cooperation: most importantly, public energy suppliers will be able to considerably improve their negotiating position by bundling their purchase volumes through novogate. Consultancy services and professional portfolio management complete the service package of novogate.
For energy companies that would like to enter a long-term cooperation, Novogate has the partner programme service package. It consists of various consultancy services, ranging from gas provision and cost reduction to support of marketing and distribution activities.
The customers will be able to make the most of the comprehensive service provision power of the companies that are represented by Novogate. This means that they will have direct access to the know-how of experienced energy procurers on the trading floors of Bayerngas and Essent in Munich and in Den Bosch.
"The added value in the gas trade is shifting more and more to production or extraction, the so-called upstream side. Due to the high investments necessary, energy companies cannot play a large role by themselves", Novogate manager Ulrich Mayr explains. "This leaves us to take a global, professional and cooperative role. Novogate has to point the way 'upstream', particularly in light of its close relationship to Bayerngas and Essent, both of which are active on the international trade markets. It may still be too early to speak of concrete investment plans, but it is apparent that there are good opportunities for joint initiatives."
His colleague Klaus Schüßler adds that the combined purchase potential of both mother firms - 200 BCM per year – is a good basis for performing successfully on the energy provision market. "This is not only realised with joint purchasing, but also with the exchange of knowledge and experience", Schüßler says. To this end, Novogate will adopt and improve upon the training and workshop programme that was already started by Deutsche Essent.
About Bayerngas GmbH
Bayerngas GmbH, with its headquarters in Munich, is the largest public natural gas company in Germany, owning its own gas pipe network of approximately 1300 kilometres, and its own gas storage in southern Bavaria. In financial year 2005, the company procured approximately 68 billion kWh of natural gas for its customers. The owners of Bayerngas are six Bavarian utilities and a regional natural gas provider from Tyrol; these companies are also clients of Bayerngas GmbH.
Published: 05 July 2006