Supply agreement signed with Gazprom

VNG Handel & Vertrieb GmbH

Supply agreement signed with Gazprom: VNG Handel & Vertrieb GmbH expands sourcing portfolio with additional natural gas supplies

VNG Handel & Vertrieb GmbH (VNG H&V), a wholly owned subsidiary of the Leipzig-based VNG Group, today signed a supply agreement with Gazprom Export (GPE). At the International Economic Forum in St. Petersburg (Russia), Ulf Heitmüller, CEO of VNG AG, and Gazprom CEO Alexey Miller signed a supply agreement that will come into effect on 1 January 2021. The contractual volume is 3.5 billion cubic metres of natural gas per year.

“The direct contractual relationship with Gazprom increases the security of supply for our customers. By importing additional quantities of natural gas, we are helping make the market more robust and compensating for declining production in Europe,” explains Heitmüller. “Gazprom and VNG have been working in partnership for many years, which we are further consolidating with this purchase agreement. In order to meet the demand for natural gas in Germany, additional pipeline gas from Russia makes the most sense economically and ecologically,” adds Heitmüller. As the fossil fuel with the lowest CO2 emissions, natural gas is already making a big contribution to rapid and affordable climate protection in all sectors. Under its ‘VNG 2030+’ strategy, VNG is aiming to gradually ‘green’ its natural gas portfolio. Gas means that short-term climate protection goals can be met as well as the other milestones on the way to decarbonisation.

With the Gazprom contract, VNG H&V is consistently developing its wholesale operations and improving its market position in terms of supply and distribution. As Konstantin von Oldenburg, Managing Director of VNG H&V, points out: “2018 marked the 45th anniversary of the German-Russian natural gas partnership. The successful conclusion of this supply agreement underlines the willingness of both parties to further expand their cooperation in the European gas sector. The new contract contributes to the expansion of the physical sourcing portfolio and thus to the stabilisation of VNG’s entire European trading portfolio.” In addition to long-term supply agreements with Norway and Russia, VNG H&V obtains additional natural gas volumes on the spot and futures markets.