EDF signs long to medium term gas supply contracts with Eni and GDF
French power incumbent EDF announced has signed a three-year 12 TWh (1.2 billion cubic meter) deal with Gaz de France as well as an eight-year 10 TWh (1 bcm ) deal with Italian utility Eni as part of its strategy to diverse its gas supplies, it said on Thursday.
An EDF spokeswoman said: “The deal with GDF will provide EDF with gas for its dual electricity/power contracts for French industrial and commercial users while the gas of Eni will be used in various other ways of which fuelling gas-fired power plants”.
Under France’s market liberalisation process — which will see domestic users able to choose their power/gas supplier from 1st July 2007 — EDF and GDF are respectively planning to take a slice of each other’s market. GDF already operates a 800 MW combined cycle gas turbine (CCGT) in the French northern town of Dunkerque and is planning to build a second CCGT plant in northwest France set to be operational in 2012.
EDF delivered its first gas to an industrial gas customer in France on 1st January and has several gas clients. The company handled 27.7 billion cubic metres of gas Europe-wide in 2004, including its own gas-fired generation needs. It expects this to reach 35.6 Gm3 by 2007 with only organic growth.
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