Secure natural gas supplies ensured for VNG customersVNG is well-prepared for a long, cold winter. The company purchases natural gas from a number of producers in Russia, Norway and Germany as well as, increasingly, on liquid European spot and futures markets. As a result of the long-term diversification of sources of supply and transmission routes as well as our high-performance infrastructure, we are well-prepared to ensure secure supplies. This is confirmed by experience over the past few years.
In the VNG Group, gas procurement is handled by VNG AG departments Gas Purchase Eastern Europe/Business Development and Gas Purchase West, trading companies in other countries and exploration and production companies.
We continue to pursue the diversification of our gas supplies and to optimize our purchasing portfolio. Our long-term gas purchase contracts are still the cornerstone of these activities. Another building brick is trading on European spot and futures markets. The quantities purchased are supplemented by biomethane produced in Germany from renewable sources. In the long term, our subsidiaries VNG Norge and VNG Danmark should account for ten per cent of our annual gas supply.
Third-largest storage facility operator in Germany
Delivery shortfalls can be fully compensated by gas withdrawal from the underground storage facilities of VNG. With a current working gas capacity of about 2.6 billion m³ at our Bad Lauchstädt, Bernburg, Buchholz and Kirchheilingen storage facilities in central and North-Eastern Germany, we are the third-largest storage facility operator in Germany.
In general terms, our underground storage facilities are used to even out daily and seasonal demand fluctuations. They are filled in the summer months, when demand for gas is low, in order to provide additional gas, for example on cold winter days. In view of the speed and dynamics of the European gas market, storage facilities make a key contribution to security of supply.