Commercialisation of natural gas
Galp Energia is one of the main resellers of natural gas in Portugal and accounts for close to 100% of the imported natural gas, which is supplied by Algeria and Nigeria through long-term procurement contracts.
In 2012, Galp Energia sold around 4 billion cubic metres of natural gas to end customers in Portugal, with the power and industrial sectors exceeding 80% of this.
Natural gas storage
Galp Energia is one of the few commercial companies in the Iberian Peninsula that holds natural gas storage capacity which allows it to exploit trading opportunities.
Currently Galp Energia storage capacity is around 40 million m3.
Distribution of natural gas
The distribution of natural gas in Portugal is provided by six distributors - five of which are Galp Energia subsidiaries – that operate under concession contracts and four so-called autonomous natural gas distribution units, where Galp Energia also has equity holdings and which operate under licence.
The distribution network – that connects around 1.3 million clients – has an extension of almost 12,000 km.
Galp Energia’s power business includes power generation, through its portfolio of cogeneration plants in Portugal, and the supply of electricity. The business is therefore an add-on to the natural gas business, either through internal consumption of natural gas through cogeneration, or through the combined supply of electricity and gas.
Galp Energia currently has an installed capacity of 245 MW, including cogeneration at the Sines and Matosinhos refineries, which are an important source of natural gas consumption for the Company and also an important source of energy generation for the refineries. These two cogeneration plants represent a consumption of about 500 mm3, or 24% of consumption in the industrial sub-segment.
As a supplier of electricity, the Company focuses its efforts on business and industrial customers, particularly those who are already customers for natural gas. However, in 2012 there was an expansion of the customer base at all levels, with the extension of supply to residential customers. At year end, the Company had more than 50,000 residential customers.
In 2012, 614 GWh of electricity were sold, while in the previous year 219 GWh were sold. This demonstrates Galp Energia’s commitment to boosting its share of the energy sector in Portugal.