Essent and RheinEnergie with joint gas storage facility
Expansion of storage capacity brings greater independence from market fluctuations
Cologne/Düsseldorf 18 September 2007 - The Cologne utility company RheinEnergie AG and Deutsche Essent GmbH plan to have a close co-operation in the field of gas storage and have signed a Memorandum of Understanding (MoU). In this regard RheinEnergie will take a 49 percent stake in a company that plans to create a storage capacity of 200 million cubic metres of natural gas in Gronau-Epe. Essent already operates a gas storage facility on the same site, which is connected to the Dutch grid.
In the course of the site expansion, four further caverns will be developed in the existing salt layer for the storage of gas. For that purpose the two enterprises want to invest together approximately 200 million euro. The new storage facility is due for completion in 2010, when it will be connected to the German natural gas grid.
Access to natural gas storage capacity is of strategic significance in the liberalised gas market. In addition, the expansion of storage capacity also contributes to the secure supply of natural gas in Germany. We have consequently been in search of a suitable investment option for a storage project and have found a good, capable partner in Essent. The planned co-operation also makes it clear that cross-border co-operation is well under way in the European energy sector," was how the CEO of RheinEnergie, Dr. Rolf Martin Schmitz, explained the collaboration.
"This co-operation is an impressive confirmation of our strategy of concentrating on collaboration with public utilities. As a company owned by municipalities and regions, we view ourselves as a partner to those public utility companies that wish to retain their independence," explained Paul van Son, Chairman of the Management Board of Deutsche Essent.
RheinEnergie AG
Based in Cologne, RheinEnergie supplies the Rhenish region of approximately 1.6 million people with electricity, natural gas, heat and drinking water and also has shareholdings in eight further utility companies in the region. In addition, since the beginning of the year RheinEnergie has also held a 25.1 percent stake in rhenag AG, which in turn owns shares in a number of municipal utilities. The goal of RheinEnergie is to establish a strong regional energy sector alliance in the liberalised energy market. In 2006 the company recorded sales of some 3.3 billion euros with a workforce of around 3,000. The City of Cologne holds 80 percent of the shares in RheinEnergie via Stadtwerke Köln, with 20% held by the RWE Group.
Deutsche Essent GmbH
Deutsche Essent GmbH, Düsseldorf, has been operating as a holding company for the German holdings of the largest Dutch energy supplier, Essent N.V., Arnhem, since 2000. It pursues a long-term growth strategy and holds 51 percent of shares in swb AG, Bremen. Through swb AG, the company also has shares in suppliers in Bremerhaven, Bielefeld, Gütersloh, Soltau, Greifswald and Ahlen. Deutsche Essent GmbH owns a majority stake in KOM-STROM AG in Leipzig, using this to further expand power activities. Deutsche Essent is also active in the gas market and continues to expand this business field via novogate. novogate is a joint subsidiary with Bayerngas GmbH. In addition, Deutsche Essent also operates a gas storage facility in Epe. Deutsche Essent GmbH is responsible for the entire wind energy activities of the group.
Please contact the following with enquiries:
Eva Wagner
Manager Communication
Deutsche Essent GmbH
Roßstraße 92
40476 Düsseldorf
Telephone 0049 (0)211 60129-165
Fax 0049 (0)211 60129-100
E-mail: presse@essent.de
Christoph Preuß
Head of Press and Public Relations
RheinEnergie AG
Parkgürtel 24
50823 Cologne
Telephone 0221 178-3036
E-mail: presse@rheinenergie.com
Published: 07 August 2007