E.ON sells 32 billion kWh of gas at 6th annual auction
Germany’s leading gas supplier E.ON Ruhrgas sold 32 billion kilowatt hours (kWh) of gas to 7 bidders in a web-based acution, the company said in a statement on Thursday.
The tender, which was held on Wednesday, was the last of six in a total 200 billion kWh gas release programme which Ruhrgas was obliged to carry out under government rules tied to its merger with E.ON in 2003. “The aim behind the requirement for the ministerial approval (for the merger) -- the promotion of liquidity on the German gas market by means of auctions and the creation of greater competition -- has thus been fulfilled,” E.ON said.
The government sought to stimulate competition to offset the dominance of E.ON-Ruhrgas which holds a 60% share in the domestic gas market. Germany consumes around 1,000 billion KWh of gas a year. Under the auction terms, E.ON will deliver highly calorific gas to the successful bidders over three years at Waidhaus on the German-Czech border, where Russian pipelines gas arrives. It did not reveal names of participants or prices paid. (Reuters)
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