Germany's Rising Gas Use: Good News for EnBW
German gas consumption rose by 3.1% in 1H2017, according to utilities association BDEW. This was all the more striking, given it followed a 11% rise in the first half of last year compared with the same period of 2015, added BDEW last week.
The latest 3% rise meant that Germany used 516 terawatt-hours of gas (48bn m3) this year, up from 500 TWh in 1H 2016, thanks partly to more gas in power generation, particularly in combined heat and power (CHP) units.
"Highly-efficient natural gas-powered CHP plants are increasingly being used again. This makes co-generation plants an important contribution to achieving [Germany’s] 2020 climate protection targets as well as for an efficient climate-friendly heat and power supply," said BDEW CEO Stefan Kapferer July 26. The association also noted a 1.6% increase in German power consumption to 282 TWh in 1H2017.
German gas consumption was up 3.1% in 1H2017, but as much as 19.8% in January and 7.8% in April (Graphic credit: BDEW)
EnBW back in the black
Resurgent German gas consumption has been good news for EnBW, which in April 2016 acquired a majority 74.2% interest in east German gas wholesaler and trader VNG and its upstream. VNG itself made a €53mn net loss in 2015, after being profitable in 2014.
Germany’s third largest power group EnBW reported July 27 a net first-half profit of €1.68bn, compared with a loss of €194mn in the same period last year, noting: “The full consolidation of VNG on May 18 has had a positive impact on revenue, sales, operating result and number of employees."
EnBW revenues grew by 7% to €10.48bn, while earnings (adjusted Ebitda) of €1.07bn were up 11%.
The company is jointly controlled by the southwest German state of Baden-Wurttemberg and a consortium of local municipalities, each with 46.75%, and remains one of the country’s largest nuclear generators; since 2012 it has bought 1.9bn m³/yr term from Novatek’s Swiss trading business.
Mark Smedley