TAQA, BANKS TO OFFER STORED WORKING GAS COLLATERAL SERVICE
(The following press release from Abu Dhabi National Energy Co., or Taqa, was received by e-mail. The sender verified the statement.)
Gas Storage Bergermeer develops service for working gas as collateral
11 March 2013, The Hague, The Netherlands – Abu Dhabi National Energy Company PJSC (TAQA) is pleased to announce it has executed Letters of Intent with Rabobank, ABN AMRO, Citi and BNP Paribas as the first banks to work together to develop a service whereby customers of Gas Storage Bergermeer can use their stored working gas as collateral for financing.
By signing the Letters of Intent the banks and TAQA made an important step in developing a framework allowing customers to make effective use of the value of their gas in store. Gas injected in the summer would be used as collateral for financing or would be the subject of repo arrangements until the gas is withdrawn in winter, improving the working capital position of customers. By having these industry leading banks on board, TAQA facilitates customer needs whilst allowing customers to work with the bank of their preference.
The final framework for this finance service is scheduled by end of 2013.
Adri Pols, Commercial Manager Gas Storage Bergermeer: “Gas Storage Bergermeer continuously searches for solutions to provide our customers maximum flexibility. Customers can already select their ideal contract tenor and pricing mechanism for primary capacity. And all available interruptible capacity will be sold daily. Customers can also trade their capacity on the secondary trading platform hosted by ENDEX. By developing this financing structure we will offer yet another benefit to current and future customers”.
With full commercial capacity available in 2015 Gas Storage Bergermeer will be the largest open access gas storage facility in Europe, providing 46TWh of seasonal storage.
Gas Storage Bergermeer The construction of Gas Storage Bergermeer began in June 2012. Commercial storage operations will start in 2014 with full capacity available in 2015. Once completed, Gas Storage Bergermeer will play an important role in securing the Netherlands’ gas supply and the country’s ambition to become the gas hub for Northwest Europe. In total, the facility will provide a working volume of 46 TWh (4.1 bcm), almost doubling the seasonal gas storage capacity in the Netherlands.
TAQA Gas Storage, a 100% subsidiary of TAQA Energy, is the contracting party for all Gas Storage Bergermeer commercial operations. In the Open Season 2011 and 2012, TAQA Gas Storage contracted, amongst others, Statoil, Vattenfall and EDF as long term primary capacity holders. 33 TWh of the 46 TWh has now been contracted to various parties on a long term basis.
TAQA has a 60% stake in Gas Storage Bergermeer. EBN B.V., a key player in the Dutch oil and gas sector with the Dutch State as its sole shareholder, holds a 40% stake in Gas Storage Bergermeer. Together, TAQA and EBN are investing € 800 million in the design and construction of the gas storage facility. As part of the realization of this project, an agreement was made with Gazprom in 2009 to deliver cushion gas to pressurize the reservoir while receiving storage capacity in return.