Successful launch of the DONG Energy Gas Release Programme
DONG Energy conducted yesterday the first gas release auction where 400 mill. m3 of natural gas, corresponding to 10 pct. of the Danish gas market, were offered. The gas release is part of DONG Energy's commitment to the European Commission following the approval of the merger of the Danish energy companies DONG, Energi E2, Elsam, Nesa, Frederiksberg Forsyning and Københavns Energi (electricity division).
The auction was designed after a new concept - the so-called "Two-Way Gas Release" - where DONG Energy will deliver natural gas in Denmark and will receive corresponding deliveries at the gas markets in the UK, Belgium, Germany and the Netherlands.
Nine bidders were qualified to the auction, where 10 lots of 40 mill. m3 of natural gas were offered. The auction was implemented on a web-based system, operated by a third party administrator.
The auction ran for 6 rounds, with bids on all 4 locations. The final result of the bidding was that the 10 lots delivered in Denmark will be exchanged against 4 lots in the UK, 2 lots in Belgium and 4 lots in Germany, while no deliveries will be made in the Netherlands.
DONG Energy is satisfied with the result, which indicates that the two-way concept has been well received by the European gas industry.
The next auction in the DONG Energy Gas Release Programme is scheduled for spring 2007.
For further comments, please contact: Louise Münter, Head of Media Relations, telephone +45 6155 8771.