Leading energy player Gas Natural Fenosa

LEADING ENERGY PLAYER

Gas Natural Fenosa of Spain is one of Spain’s leading energy players, pioneering gas and electricity integration and also looking at the development of nuclear energy. Its operations span more than 25 countries worldwide, covering Europe, North Africa, the Americas and Australia. Piotr Sadowski reports.

After the acquisition of the electricity company Unión Fenosa, the third largest in the Spanish market, the group has successfully integrated the country’s gas and electricity businesses into a single entity. With its extensive experience in the energy sector, Gas Natural Fenosa is able to operate successfully across many different global markets.

“We offer services to over 20 million customers on five continents, delivering 15.4 GW of installed power and a diversified mix of electricity generation,” says José Antonio Herrera, Nuclear Director at Gas Natural Fenosa Engineering. “The group is continuously expanding and is currently aiming at its largest international acquisition ever, and the biggest ever in Latin America. The goal is the purchase of CGE SA, the biggest distributor of electricity and gas in Chile, which serves 2.5 million customers and distributes 40 per cent of electricity in the Chilean market including serving part of the capital, Santiago de Chile.”

Strong presence in Spain and Europe

Gas Natural Fenosa serves both the domestic and industrial markets for the distribution of electricity and gas, both in Spain and across international markets. It is the third biggest distributor of gas and electricity on the Iberian market, with close to 9 million connection points. In the gas distribution sector, the group operates through companies operating in ten autonomous communities. Its Spanish electricity business, on the other hand, includes electricity generation through nuclear power stations, hydro plants, coalfired, fuel-gas and combined cycle plants – operating under the so-called ‘ordinary regime’. It also generates electricity under the ‘special regime’, including wind farms, mini hydroelectric and cogeneration plants.

In addition to Spain, Gas Natural Fenosa currently operates in eight other European countries: Germany, France, Belgium, the Netherlands, Luxembourg, Italy, Moldova and Portugal. “We are also very attentive to what is happening in other European markets, including the UK, in terms of potential new projects,” adds Mr Herrera. “While not committing to any specific new acquisitions, we are at the same time not closing any avenues for further expansion in the European and global markets. Our goal is to operate as an efficient and modern group, with a vision of being the leading energy service company, with projects renowned for their excellent credentials right from the very start. We will take into consideration the fact that the global energy market is moving towards a much reduced risk, so all our current and future projects will be carried out with minimum risk but maximum security and sustainability.”

The importance of the Americas

America are naturally very crucial market for Gas Natural Fenosa, where the group is already very well-established and is developing new projects, as the example of the

purchase of CGE SA in Chile shows. In Brazil, the group has been operating since 1997 through the companies CEG, CEG RIO and Gas Natural SPS, which distribute gas in the state of Rio de Janeiro and Southern Sao Paolo. In Colombia, it operates through Gas Natural SA ESP and Electricaribe SA ESP, which work in the distribution and sales of natural gas and electricity.

“Costa Rica is another very key market for us, where we generate electricity through a hydroelectric plant and are also executing a new major construction project,” says the sales director. “Mexico, then, is where we are the main gas distributor in the country and we are also important in the electricity generation sector, including through combined cycle generation plants. We also supply natural gas in Argentina and Perú, generate and distribute electricity in Panamá and the Dominican Republic [two thermal power plants], and operate in Puerto Rico through the company Ecoeléctrica, which has a 540MW combined cycle plant and a regasification plant.”

Continuing to develop global presence and strength

Gas Natural Fenosa is also a very active player in Africa, Asia and Oceania – markets which will help it to further establish itself as one of the most important worldwide players in gas and electricity generation and distribution to millions of customers. Angola, Algeria, Egypt and Morocco (mainly gas operations), and Kenya and South Africa (mainly electricity-related activities), are currently the six African markets where Gas Natural Fenosa is working through commercial operations, shareholder agreements and ownership of stakes in local companies.

“We are also present in Oman, where we hold a stake in the Qalhat liquefaction plant, as well as in Australia, where we operate through Unión Fenosa Wind Australia Ltd, which has wind energy projects in the states of Victoria and New South Wales,” says Mr Herrera. “In fact, UFWA is the fourth largest development company in Australia, based on the size of its project portfolio. More than a third of the projects are at an advanced stage in the permit granting process and they are excellently located with regards to wind and connectivity resources.” n