Business model

Business model of the network operators in the Netherlands and Germany

The network operators in the Netherlands and Germany offer their services in a customer-focused and transparent manner. They sell the available capacity on competitive terms. Gas can be fed into the network at entry points, and customers can draw gas from the network at exit points. Customers enter into contracts to reserve capacity at specific network entry or exit points over a specific period (year, quarter, month or day).

The rates that we charge our customers are regulated. They are determined once a year by the regulatory authorities, which review the method of regulation every 3 to 5 years. The regulatory authority in the Netherlands is the Authority for Consumers & Markets (ACM), and in Germany it is the Bundesnetzagentur (BNetzA).

The rates are calculated by dividing the permitted revenues for the year in question by the estimated capacity demand. If the actual demand (and thus the revenues generated) are different, the difference will be settled in later years.

The revenues permitted by the regulator consist of a capital cost allowance for the invested capital, a reimbursement for the annual depreciation costs (calculated on the basis of the depreciation periods determined by the regulator and the value of the assets) and a reimbursement for the operating costs.

Gasunie Deutschland is participating in a joint venture to build and operate the EUGAL pipeline. Participation in this project constitutes expansion of Gasunie Deutschland’s transport capacity, bolstering the position of Gasunie’s network in international transit flows. Various branches to the west link the pipeline to gas markets in Germany, the Netherlands, Belgium and the UK. The intention is that the first part should be taken into use from 2020 and that the total capacity should be available in 2021. The construction work started in 2018 and the project is progressing according to plan.
We have a 16.5% share in de EUGAL pipeline.

Participations business model

Participations provides infrastructure services such as gas storage, transport through international pipelines (including sea pipelines) and a terminal for the import of liquefied natural gas (LNG). It is responsible for the sale and delivery of these gas infrastructure services. Customers buy capacity, which entitles them to use the relevant infrastructure during a certain period. The rates for these services are mainly determined by the market of supply and demand. The business risks and return targets of this business unit’s activities are higher than those of our fully regulated activities.

Participations supports the proper functioning and liquidity of the energy market, and positions the Netherlands as a hub in the international gas flows. In this way, it contributes to the utilisation of our gas transport networks in the Netherlands and Germany.

Our participations
Usually in cooperation with other parties, we participate in a number of companies that contribute to the security of gas supply in Europe. The most important of these are mentioned below.

Map Europe Map Europe

Gate

The Gate (Gas Access To Europe) terminal is located on the Maasvlakte in Rotterdam and is as yet the only import terminal for...

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The Gate (Gas Access To Europe) terminal is located on the Maasvlakte in Rotterdam and is as yet the only import terminal for liquefied natural gas (LNG) in the Netherlands. The Gate terminal receives LNG for its customers, stores the LNG and converts it back into gaseous form, and then introduces it into the gas transport network for distribution to domestic households and industry. Through Gate terminal CV, we have a 50% interest in the terminal.

Nord Stream

Nord Stream is a double natural gas pipeline through the Baltic Sea. It has provided the European pipeline network with an...

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Nord Stream is a double natural gas pipeline through the Baltic Sea. It has provided the European pipeline network with an extra connection to gas flows from Russia. With production in Europe continuing to decline, Nord Stream is important if we want to be assured of sufficient gas supply capacity on the European gas market. We have a 9% interest in Nord Stream A.G.

BBL

BBL is a pipeline from Balgzand in the Netherlands to Bacton in the UK. The pipeline contributes to a stable supply of gas in...

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BBL is a pipeline from Balgzand in the Netherlands to Bacton in the UK. The pipeline contributes to a stable supply of gas in the United Kingdom, which to a large extent has become dependent on imported gas for its gas supply. We have a 60% interest in BBL Company V.O.F.

EnergyStock

This facility for underground gas storage compensates for short-term fluctuations in the supply and demand of natural gas. The...

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This facility for underground gas storage compensates for short-term fluctuations in the supply and demand of natural gas. The very high flexibility of this buffer (quick storage and dispatch) is important for balancing the portfolios of EnergyStock customers. In addition, the gas storage is used by traders who take advantage of price fluctuations in the energy market. Under the name HyStock, an installation will be put into operation in spring 2019 for the conversion, storage and transportation of green hydrogen. We have a 100% interest in EnergyStock B.V.

Gasunie New Energy

Gasunie New Energy B.V. develops business opportunities in the field of sustainable energy. Area of work: (renewable) energy...

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Gasunie New Energy B.V. develops business opportunities in the field of sustainable energy.

Area of work: (renewable) energy forms, such as solar and wind energy, energy from biomass, renewable gas and geothermics. This is almost always done in close collaboration with other project partners. This takes place, for instance, in the following subsidiaries, in which Gasunie New Energy has a particular interest:

  • Biogas Netwerk Twente B.V.: Approximately 4 million m3/year of green gas fed into Cogas’ gas network. We have a 50% interest.
  • SKW assets B.V.: This company used the principle of supercritical water gasification to build a demo gasification plant in Alkmaar and is further developing this new technology. SKW makes the necessary gasification plant available to a third party. We have a 50% interest in SKW assets B.V.

Vertogas

Subsidiary Vertogas B.V. works by order of the Ministry of Economic Affairs and Climate as a certification authority for green...

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Subsidiary Vertogas B.V. works by order of the Ministry of Economic Affairs and Climate as a certification authority for green gas. It issues certificates that confirm the sustainable origin of green gas and prove the sustainability of the production method in a transparent way. We have a 100% interest in Vertogas.

Gasunie Engineering

Gasunie Engineering B.V. offers commercial services to other organisations with an underground transport system, such as...

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Gasunie Engineering B.V. offers commercial services to other organisations with an underground transport system, such as network companies, industries and public and semi-public organisations. We deploy the core expertise available within Gasunie on the design, construction and management of infrastructure. We have a 100% interest in Gasunie Engineering B.V.

Gasunie Waterstof Services

Gasunie Waterstof Services wants to develop and manage large-scale hydrogen infrastructure in the Netherlands. To this end, we...

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Gasunie Waterstof Services wants to develop and manage large-scale hydrogen infrastructure in the Netherlands. To this end, we want to reuse and efficiently utilise the existing gas transport networks and we do this sustainably, safely and reliably.
The first pipeline route that GWS has under its management is supplier DOW Benelux’s hydrogen pipeline to customer Yara Sluiskil. The project was put into operation in November 2018. We have a 100% interest in GWS B.V.