GasTerra

Transcription

GasTerra

GasTerra B.V.
Annual Report 2012
Natural gas in perspective
2 | GasTerra Jaarverslag 2012
3
Mission, Vision and Strategy
GasTerra’s Company Profile, Mission, Vision, Core Values and Strategy
Company Profile
Vision
Core Values
Strategy
GasTerra BV is an international company trading in
GasTerra plays an important role in the utilisation of
A focus on customers, results and improvement are
The company implements its mission and vision by
natural gas. From March 2013 on, it will be operating
domestic gas reserves and energy supply in the
GasTerra’s three core values. These are the values that
utilising its position on the European market to the
from its new premises at Stationsweg 1 in Groningen.
Netherlands and the EU by virtue of natural gas’
GasTerra’s staff adopt as a premise for all their business
fullest extent possible – principally in those market
It operates on the European energy market and has
economic value and public importance. GasTerra
dealings. GasTerra’s operations are based on a code
segments where demand exists for natural gas in
a significant share in the Dutch gas supply. The
promotes the safe and efficient use of natural gas and
of conduct in which integrity and respect serve as its
combination with supplemental services. In doing so,
company also provides services related to gas trading.
is active in the development of innovative applications.
guiding principles. The company strives to build long-
use is made of gas from Dutch natural resources, as well
The company has a strong purchasing position and
The company pays particular attention to energy supply
lasting relations with the private sector and to enter into
as the flexibility offered by gas usage. Gas from overseas
almost fifty years of experience in natural gas
sustainability and initiates various related projects.
agreements that reflect natural gas and its
sources is procured if and when this is coherent with
associated services’ value. GasTerra is governed by
the general supply and demand portfolio. As a
procurement and sales.
GasTerra endeavours to allow sustainability-related
principles coherent with those associated with corporate
proponent of a free energy market, GasTerra is
Mission
projects to be managed in an accountable fashion,
social responsibility (CSR). The three basic CSR principles
continuously developing new products and services. In
GasTerra’s mission is to maximise the value of natural
i.e. taking both economic and ecological interests into
of people, planet and profit have been expressed in
this respect, it believes that it is very important to be a
gas reserves in the Netherlands.
account. Gas shall remain an indispensable source of
terms of the company’s own spheres of influence – Gas,
reliable and competitive gas supplier to its customers.
It fulfils a public role with regard to the implementation
energy in the energy transition process if we wish to
Green and Groningen. Where Gas stands for company
GasTerra aims to strengthen natural gas’ position within
of the Dutch government’s Small Field Policy. This
safeguard energy supplies and reduce CO2 emission
operating results, Green stands for our mission to bring
the overall energy mix.
policy is aimed at promoting natural gas production in
levels. The Netherlands shall continue to be a major
about socially responsible energy transmission and
smaller gas fields in the Netherlands.
producer of natural gas for several decades to come.
Groningen – our place of business – stands for the
community of which we are a part.
5
Table of Contents
Energy is a broad and complex term. All our stakeholders deal
CEO’s Message
with energy in some form or another, but each from his/her
Management Information
own perspective and background. This annual report aims to
depict the world of the energy expert for a variety of energy
Reading Guide
7
11
Outline in Figures
17
19
83.4 billion m³ of natural gas actually mean in terms of
Report on Activities
23
Market Trends
23
Virtual Trading Point Sales
25
Energy Company and Industrial Sales
27
Overseas Sales
30
of energy such as wind power, solar power or biomass? This
allows GasTerra to be viewed from an unusual perspective.
Hence the title of GasTerra’s 2012 Annual Report – Natural
Gas in Perspective. Appendix 3 contains the supporting
technical data for these theme pages. This appendix has been
published on our website www.gasterra.nl.
Message from the Board of
Supervisory Directors
84
Miscellaneous86
Annual Report Summary
sold by GasTerra in 2012 equate to in terms of other sources
67
15
users by means of seven theme pages.What does the sale of
energy? In other words, what does the volume of natural gas
Annual Accounts 2012
Independent Auditor’s Report
86
Independent Assurance Report
88
Procurement31
Transmission36
European Legislation
36
Dutch Legislation
39
Risk Management
41
Corporate Social Responsibility
43
Stakeholder Dialogue
44
Green Gas
49
Knowledge and Education
51
Innovation53
Sponsorship and Advertising
55
Personnel and Organization
58
Codes of Conduct and Procedures
62
New Office Premises
63
This Annual Report is a
translation of the original
Dutch Annual Report. The
Dutch Annual Report is
adopted and approved by
the General Meeting of
Shareholders as at
14 February 2013. This
translation is for
information purposes
only and no rights can be
derived from its content.
The Dutch Annual Report
takes precedence.
7
CEO’s Message
Once again, GasTerra has achieved excellent results. The company
achieved higher turnover levels than last year – despite slightly lower
volumes of gas sold – due to higher average gas prices. Regardless of
any prevailing market trends, GasTerra’s excellent performance in
2012 is primarily attributable to the merits of our staff. An expression
of gratitude to everyone is certainly called for.
However, these positive results somewhat shroud current
This brings me to European energy and climate policies.
uncertainty on European gas markets. Gas production in
Major strides have been made in recent years to fully
the USA has grown enormously due to shale gas
liberalise gas markets. Gas trading points where gas can
extraction. US power generation companies are thus
be freely traded have now been established across the
switching from coal to gas en masse. Surplus coal arising
continent in wake of similar developments in the United
from this switch is mainly being exported to Europe
Kingdom. These gas hubs have grown considerably,
prompting a drop in coal prices. Exactly the opposite of
especially the Dutch Title Transfer Facility (TTF) that traded
what is happening in the USA is taking place in Europe
no less than 775 billion m³ of gas in 2012. This represents
– power generation companies are switching from gas
an increase of over twenty per cent with respect to 2011.
to coal. They are opting to minimise or even shut down
This made the TTF one of the foremost gas trading points
gas-fired power station output because it is economically
in Europe. Hub liquidity also increased. Gas volumes are
more viable to generate power using coal. This is not
being traded more frequently before being physically
only bad news for the gas sector, but highly detrimental
delivered to end users. This is a clear sign that the
to European climate-control targets. Natural gas may
liberalised gas market is functioning properly. Free
be a fossil fuel, just as coal is, but its CO2 emission levels
markets ultimately create optimal conditions for economic
are far lower per unit of energy. Consequently, it is now
activity including critical investments in new energy
proving increasingly difficult to reduce CO2 emission levels
production and infrastructure for our sector.
in Europe.
Consequently, government can then concentrate on
creating a framework within which the private sector is
allowed to grow in an optimal fashion.
8 | GasTerra Annual report 2012
9
Gertjan Lankhorst,
CEO GasTerra B.V.
Every government policy measure should raise the same
This annual report differs from last year’s in one crucial
question – what problem are we actually trying to solve?
aspect. Last year, we dedicated a separate chapter to
Where supply security is concerned, the problem is one
social aspects of our reporting. This year, the corporate
of supply lagging behind increasing global demand.
social responsibility (CSR) theme is no longer a separate
Companies therefore need room to manoeuvre in order
entity. This is a result of our vision concerning CSR, this
to invest economically and ecologically in the
being that CSR can no longer be viewed as a separate
development of conventional and alternative sources of
entity in terms of reporting our company’s operating
energy. Where climate targets are concerned, the problem
results. Naturally, we wanted to express this in terms of
is one of reducing greenhouse gas emissions. The best
the content of our annual report.
GasTerra actively formulated its CSR policies in 2010 with
ongoing projects targeting energy-related issues in the
way to achieve this is to formulate a single, binding CO2
the principal aim that they would be fully integrated and
fields of knowledge, education and innovation shall also
objective. The Emissions Trading Scheme (ETS) is in theory
embedded into the very fabric of our company. Since
be unrelenting. Nor shall GasTerra’s commitment to
the best tool currently available for achieving this goal.
then, we have made significant progress in this respect.
supporting culture and sport diminish in any way –
Not all sectors fall under the auspices of this scheme,
You will be able to find examples of the progress made in
another of our social roles. GasTerra’s conviction in this
hence supplementary goals also need to be set, e.g.
this report.
respect has been clearly articulated in its vision and in this
energy savings. In addition to making conventional
report.
sources greener and improving energy efficiency,
As a seller of Dutch natural gas, GasTerra is fully aware
sustainable power generation is another means
of its social responsibilities, especially in terms of energy
desperately needed in order to fulfil the mission that we
policies. GasTerra shall therefore continue to make every
set ourselves, this being twenty per cent reduction in CO2
effort possible towards providing sustainable energy
emission levels by 2020 and eighty to ninety-five per cent
supplies. In order to achieve this goal in an accountable
reduction by 2050 with respect to 1990.
fashion, we shall also be continuing our participation in
transition-related projects – such as green gas – in
Gertjan Lankhorst,
dialogue with our stakeholders. Our commitment to
CEO GasTerra B.V.
11
Management Information
H
CEO
Gertjan Lankhorst
Secretariat to the Board
Kristel Klink
D
Legal and Regulatory Affairs
Herbert van Zijll de Jong
J
P
Human Resources
Bart Westmaas
Information Technology
Johan Stäbler
I
C
Communication and Public Affairs
Anton Buijs
F
O
M
Finance and Facilities
Maurice de Wilde
Strategy and Optimisation
Anton Broenink
Commercial Affairs
Jacob Kielman
Board of Management
Heads of Department
G.J. Lankhorst, Chief Executive Officer
A.J.P. Buijs, Chief Communications & Public Affairs
Officer
Other Management Team Members
J.R.L.W. Stäbler, Chief Information Officer
B.A. Westmaas, Chief Human Resources Officer
Directors
M. Blacquière, Chief Financial Officer
M.W.J. de Wilde
(until 01 December 2012)
M.J.W. de Wilde, Chief Financial Officer
From left to right:
J.E. Kielman,
A.E.M. Broenink,
G.J. Lankhorst,
A.J.P. Buijs,
H.J. van Zijll de Jong,
J.R.L.W. Stäbler,
B.A. Westmaas.
(from 15 January 2013)
A.E.M. Broenink, Executive Director Strategy and
Optimisation
J.E. Kielman, Chief Commercial Officer
H.J. van Zijll de Jong, Chief Legal Officer
13
Board of Supervisory Directors
(as of the end of 2012)
De Wet Bestuur en Toezicht [Dutch Management
C.W.M. Dessens, Chairperson*
effective as of 01 January 2013. The Wet Bestuur en
D.A. Benschop*
Toezicht contains among others provisions concerning
J.D. Bokhoven*
balanced participation of men and women on the Board
P. Dekker
of Supervisory Directors. The company’s allocation does
M.E.P. Dierikx*
not yet comply with this provision. No vacancies emerged
J.C. De Groot
on the Board of Management or the Board of Supervisory
J.M. Van Roost*
Directors during the reporting year. Should any vacancies
A.P.N. van Veldhoven
emerge, then the company shall examine options to
and Supervision (Public and Private Companies) Act] is
achieve a more balanced participation.
* Also a member of the College of Delegate Supervisory
Directors.
Appendix 1 contains information about the background
of the members of the Board of Management and the
Board of Supervisory Directors. Appendices 1 to 9 can be
found on our website at www.gasterra.nl.
Staff Council (as of the end of 2012)
E. Lam, Chairperson
J.A.H. Boekhoudt
J.R. Honkoop
Y.N. Man
E.T.O. Medas
Z.D. Mulder-Wilts
R.A. Slob
C. Weeda
A.H. Wijsbeek
15
Reading Guide
Gas
Green
Groningen
GasTerra’s core business is
the procurement and sale of
natural gas. General,
commercial and
administrative
developments within the
gas sector, as well as
GasTerra’s role and activities
on the gas market, have
been marked using this
icon.
Gas plays an indispensable
role in making the energy
sector more sustainable.
GasTerra has dedicated
itself to promoting the
responsible use of natural
gas in order to fully utilise
the benefits provided by
gas as the cleanest fossil
fuel. GasTerra’s foremost
activities in this respect
have been marked using
this icon.
GasTerra is a Groningenbased company that invests
in its staff and in society.
GasTerra’s foremost
activities and developments
in terms of its staff policies
and its major contribution
to society have been
marked using this icon.
Corporate social responsibility (CSR) has been embedded
As a guide for readers, all content has been marked
into GasTerra’s day-to-day operations. Consequently,
with an icon indicating one of the three GasTerra
GasTerra has opted to fully integrate its CSR report into
cornerstones – Gas, Green and Groningen (see
this year’s annual report. The annual accounts have
adjacent). These cornerstones have been based on the
been included as a separate section. Information has
better-known principles underlying corporate social
been provided in a hierarchical structure in order to
responsibility – people, planet and profit.
make it accessible for anyone, regardless of how much
time is available to them. The first page of the report
contains the company profile, mission, vision and
strategy followed by a table of contents, the CEO’s
message, management information and an outline in
figures. The annual report has then been summarised,
followed by a detailed description of GasTerra’s activities
over the past year. Reference has been made throughout to appendices with supplemental background
information. These appendices can be found on
GasTerra’s website at www.gasterra.nl.
17
Outline in Figures
20122011
Income and Expenditure (in millions of Euros)
Net Turnover
23,38121,095
Gas Purchases
22,86120,283
Transmission Costs
505708
Results (in millions of Euros)
Result before tax
4848
Net Profit
3636
Dividend
3636
Other Financial Information
Investments (in millions of Euros)
1311
Liquidity Ratio
1.11.0
Balance Sheet Data (year-end, in millions of Euros)
Total Assets
Shareholders’ Equity
Current Liabilities
3,7344,121
216216
3,5183,905
Volumes Sold (in billion m3)
Total Sales
83.486.7
- The Netherlands
34.838.1
- Rest of Europe
48.648.6
Personnel (year-end, in fulltime-equivalenten)
Company Employees
189197
Health and Safety
Absenteeism (%)
1.42.3
Average Absenteeism Rate
1.21.4
19
Natural Gas
83 billion m3
Annual Report Summary
Solar Power
17 seconds
What is the equivalent of the total
volume of natural gas
(83 billion m3) supplied by
GasTerra, when expressed in
terms of solar energy?
The energy content of
83 billion m3 of natural gas
is the same as the amount
of solar energy reaching
Earth in 17 seconds.
83 billion m3 of natural gas =
17 seconds of sunlight
Sales
Procurement
Volumes
Groningen Gas Field
GasTerra procured 83.4 billion m³ of gas in 2012. This is
The major portion (57%) of the gas procured in 2012
four per cent less than in the previous year. However, the
originated from the Groningen gas field (47.2 billion m³).
portion of the total volume of gas sold by GasTerra that
This was 2.4 billion m³ more gas than was purchased
was traded on the Dutch TTF trading point decreased only
from this field with respect to 2011. This can be
slightly. GasTerra sold 27.3 billion m³ of gas on the TTF.
attributed to rising demand for Groningen gas caused by
GasTerra also expanded its operations still further in 2012
lower temperatures in 2012 with respect to 2011.
at several foreign trading points. See page 25.
See page 31.
Energy Company and Industrial Sales
Small Fields
Sales to national energy companies and industrial
GasTerra procured 25.9 billion m³ from small fields in
customers in 2012 were marked by high supply levels and
2012, a decrease of 1.5 billion m³ with respect to 2011.
heavy competition. GasTerra supplied a total of
This decrease can be attributed to declining production
11.5 billion m³ of gas to these customer segments in
levels from existing fields. In 2013, GasTerra aims to
2012 – 4 billion m³ of which on the TTF – a decrease of
offer producers the option to link supply to production
3.9 billion m³ with respect to 2011. See page 27.
capacity, as well as demand, in order to provide small field
producers greater flexibility regarding volumes to be
Export
supplied. See page 32.
Supply to foreign customers in 2012 remained constant
with respect to 2011 at 48.6 billion m³. These stable
Sundry Procurement
export figures can be attributed to long-term contracts
In 2012, GasTerra procured a total of 10.3 billion m³ of
that GasTerra signed with these customers. See page 30.
gas from Norway, Russia and other virtual trading points.
Procurement from all supply sources dropped with respect
to 2011. See page 33.
In 17 seconds
21
Green Gas
Innovation
GasTerra started trading in green gas in 2012. In 2011,
GasTerra is closely involved in fuel cell testing in several
GasTerra has had a code of conduct in place since its
GasTerra signed declarations of intent with Suiker Unie
built environments. GasTerra, Eneco, Joulz and Stedin
inception that incorporates standards intended to
have also been testing the effects of mixing hydrogen into
promote and safeguard the quality and integrity of the
and bio-fuel producer BioMCN. In 2012, these
declarations were converted into procurement and sales
the gas supply in fourteen homes. Results for this pilot
way GasTerra’s employees do business. The company has
contracts. Green gas procurement contracts were also
CSR Policies
project were presented on 20 September 2012.
also developed various rules and procedures in addition to
signed in 2012 with HVC and Greenchoice. See page 49.
In 2012, GasTerra opted to fully integrate its 2013 CSR
See page 53.
external legislation and regulations. See page 62.
objectives into its business plan. This means that there is
no longer any form of differentiation between GasTerra
Sponsorship
policy and CSR policy as of 2013. See page 43.
Premier division basketball club GasTerra Flames, the
GasTerra Ladies Run, the Groninger Museum, the Prince
Stakeholder Analysis
Claus Conservatoire and many other organizations were
In 2012, GasTerra performed its second stakeholder
once again able to rely on GasTerra’s support as in
analysis. No major changes were noted with respect to
previous years. In 2012, GasTerra engaged in several other
the previous year. See page 45.
new sponsorship activities including the Tour for Life and
a youth chess tournament. See page 55.
In 2012, GasTerra invested €2.4 million into knowledge
and education, the largest portion of which was
GasTerra’s workforce is characterised by its stability. Low
dedicated to the Energy Transition Model (ETM). The
numbers of employees entering and leaving employment
Energy Academy Europe (EAE) was also officially opened
counteract one another meaning that the staff
on 20 September 2012. See page 51.
complement has changed very little in recent years. See
page 58.
23
Natural Gas
83 billion m3
Coniferous
Forest
290.000 km2
290.000 km2 of coniferous forest
Report on Activities
What is the equivalent of the
total volume of natural gas
(83 billion m³) supplied by
GasTerra when expressed
in terms of the energy stored
in forests?
west Europe decreased still further in 2012. This is an
indication of good gas market integration. It is also
anticipated that the trend for matching supply and
Market Trends
demand at virtual trading points will continue in the years
ahead.
GasTerra operates against a backdrop of trends that
83 billion m³ of natural gas
of energy stored in
sustainably managed
coniferous forest covering
an area comparable to 80%
of the size of Germany.
affect the north-west European gas market. Demand
It is predicted that growth in trading on the TTF will also
for gas in north-west Europe has dropped in recent
continue, consolidating its position as one of the most
years. Demand from gas-fired power stations is under
dynamic trading points in Europe. The merger announced
pressure due to low coal and CO2 prices – as
between leading international energy exchanges –
compared to gas prices.
Intercontinental Exchange (ICE) and the Anglo-Dutch APX
ENDEX – reinforces these predictions. ICE hereby acquired
Virtual Trading Points
a majority shareholding in derivatives and gas spot trading
The Dutch virtual trading point, TTF, continued to grow
on the APX-ENDEX. Consequently, the position of both
in 2012. This became evident in the form of improved
exchanges on the TTF will be strengthened.
liquidity and increased trading volumes. Trading points
also grew in neighbouring countries. Price differences
Gas-Fired Power Stations
between the TTF and other virtual trading points in north-
GasTerra views gas as the ideal fuel for use alongside
renewable sources of energy. Gas-fired power stations
can be deployed flexibly. They can be put online and
Natural gas sales
taken offline very rapidly and are the least polluting form
in billion m
of fossil fuel-powered power station. However, European
3
power generation companies are increasingly opting
2012
for coal instead of gas to generate electricity because
of current pricing levels. Gas-fired power stations have
2011
therefore only been used to a limited extent in recent
2010
years. Companies in neighbouring countries are even
considering shutting down gas-fired power stations.
2009
Governments are concerned that this move will jeopardise
2008
0
the security of electricity supply if these flexibly deployable
10
20
30
40
50
60
70
80
90
100
power stations are closed down. Moreover, their closure
25
constitutes a threat to the deployment of sustainable, less
Title Transfer Facility (TTF)
predictable sources of energy. This is why regulators in
Nominated and physical volumes per month (in million m3 natural gas, 2008 - 2012)
these countries are currently investigating how delivery
security can be safeguarded.
Liquid Gas
Supply of liquefied natural gas (LNG) also affects gas
markets. European LNG terminal utilisation was low in
2012. LNG – originating principally from the Middle East
and Africa – was mainly exported to Asia due to pricing
levels. Demand for LNG rose significantly in Japan
because nuclear power stations were decommissioned in
2011 after the Fukushima nuclear disaster. Australia is also
expected to become a more prominent LNG exporter in
the years ahead. The USA is investigating options to
export LNG in response to large-scale shale gas
production levels. This gas will probably also be exported
to Asia given current pricing levels.
21,000
Virtual Trading Point Sales
20,000
19,000
The total physical volume of gas traded on the TTF
18,000
in 2012 was 42.7 billion m³. This is over 11 per cent
17,000
more than in 2011.
16,000
15,000
TTF
14,000
GasTerra physically procured 27.3 billion m³ of gas in
13,000
2012 on the TTF. Sales on the TTF dropped by 1.8 billion
12,000
m³ (6%) with respect to 2011.
11,000
The TTF’s role in European gas trading grew still further
10,000
throughout 2012. The portion of the total volume of
9,000
gas sold by GasTerra and traded on the TTF decreased.
8,000
However, the number of contracts signed increased.
7,000
TTF’s position as one of the most liquid trading points in
6,000
Europe was strengthened still further in 2012. Trading at
5,000
other European trading points also grew, e.g. on the NCG
4,000
(NetConnect Germany) and GASPOOL (Germany). Graphs
3,000
on this page and 26 and 27 show how trade on the TTF,
2,000
NCG and the NBP (National Balancing Point – UK) has
1,000
grown in recent years. Spot trade products such as Day
0
2008
2009
nominated volume
2010
physical volume
2011
2012
Ahead (DA) and Within Day (WD) grew at German trading
Source: Gas Transport Services
points in particular. Futures trading played a prominent
role on the TTF. Large numbers of transactions in
principally monthly, quarterly, seasonal and annual
products strengthened the TTF’s position.
27
Net Connect Germany (NCG)
Traded and physical volumes per month (in million m natural gas, 2008 - 2012)
3
Foreign Trading Point Activity
National Balancing Point (NBP)
GasTerra also traded at several foreign trading points in
Traded and physical volumes per month (in million m3 natural gas, 2008 - 2012)
2012, in addition to the NBP. This provided us greater
19,000
opportunity to balance and optimise our procurement
18,000
and sales portfolios. Half way through the year, GasTerra
17,000
started trading at the Zeebrugge hub followed by the
16,000
Belgian ZTP trading point that opened in October 2012.
15,000
Since December 2012, GasTerra has also been selling gas
14,000
on the NCG and GASPOOL.
13,000
12,000
Procedures for international trading are still subject to
11,000
change due to new European regulations intended to
10,000
harmonise European gas trading markets still further.
9,000
170,000
Energy Company and Industrial
Sales
160,000
150,000
140,000
Dutch domestic sales to energy companies and
130,000
industrial companies in 2012 were marked by high
120,000
supply levels and heavy competition. The number of
110,000
large-volume gas suppliers grew.
100,000
90,000
Liberalisation of the north-west European gas market has
80,000
meant that suppliers that traditionally traded overseas
70,000
8,000
60,000
7,000
50,000
6,000
40,000
5,000
30,000
4,000
20,000
3,000
10,000
2,000
0
have been operating in the Netherlands for some time
now. GasTerra maintained its position well in response
to this new competition. GasTerra supplied a total of
11.5 billion m³ of gas to energy companies and industrial
customers in 2012 – 4 billion m³ of which on the TTF – a
decrease of 3.9 billion m³ with respect to 2011. This drop
was mainly caused by relatively high temperatures at the
2008
1,000
traded volume
0
2008
traded volume
2009
2010
physical volume
2011
2009
2010
physical volume
2011
end of 2012 and the weak position of gas compared to
2012
Source: National Grid
that of coal for generating electricity. Volumes contracted
2012
in 2012 for upcoming delivery years grew nonetheless
Source: Net Connect Germany
with respect to the year before. By the end of 2012,
contracted volumes for 2013 were 1.5 billion m³ higher
than those contracted for 2012 at the end of 2011.
29
Natural Gas
83 billion m3
Road
Vehicles (NL)
6-year
fuel supply
GasTerra when expressed in
terms of vehicle fuel?
Approximately 14 billion litres
of fuel is used in
the Netherlands annually
is the same as that of the
fuel required to keep all
road vehicles in the
Netherlands running.
Energy Companies
continuing to improve its service levels. A broader spread
Volumes contracted by GasTerra in 2012 for 2013 to
was also achieved with respect to previous years in terms
energy companies for domestic supply in the Netherlands
of contract term and contracting moments throughout
rose by forty per cent with respect to contracted volumes
the whole year. Numerous industrial organizations are
in 2011 for 2012. The number of customers also grew
attempting to consolidate their international energy
substantially in 2012. Ongoing product and contract
procurement requirements. GasTerra therefore targeted
development aimed at meeting the market’s needs –
these multi-site organizations by capitalising on its
principally the shift towards trading on the TTF – formed
position on foreign hubs. In 2012, we significantly
the basis for this growth. For instance, GasTerra intro-
expanded our operations with green gas producers and
duced a product in 2012 that allowed smaller energy
other parties. This resulted in several new agreements
companies to make their portfolio procurements on the
being signed for the procurement and sale of green gas
TTF via GasTerra. This product allowed customers who are
(see p. 49 e.v.).
not yet active on the TTF to procure TTF-traded products.
83 billion m
of natural gas =
6-year supply of fuel
for all road vehicles
in the Netherlands
3
GasTerra adopts standard European Federation of Energy
Environmental Plan for Industry (EPI)
Traders (EFET) procurement and sales terms & conditions
In 2012, GasTerra carried out various projects on behalf
for the supply of non-standard products, e.g. profile or
of its industrial customers as part of its Environmental
flexible supply. Both developments were well received
Plan for Industry (EPI) that aims to contribute towards
by the market. In the years ahead, GasTerra shall remain
increased efficiency concerning gas usage. This
active in the field of product and contract development
programme helps industrial customers gain a better
in order to increase sales in this segment. In doing so,
insight into their energy consumption and provides them
GasTerra will be making major strides towards achieving
with technical expertise for improved energy efficiency
one of its main CSR objectives – Gas 2 – to develop
and process optimisation purposes. In doing so, we are
commercially appealing products (see p. 47).
making strides towards achieving one of our main CSR
objectives – Green 3 – to promote sustainable business
Industry
practices (see p. 47). GasTerra has been running this
Sales to industrial customers decreased in 2012 with
programme since the 1990s. Consultancy activities in the
respect to 2011 due to declining industrial production
field of sustainability have expanded in recent years. For
and increasing competition. Nevertheless, GasTerra
instance, the spectrum of consultancy services was
successfully maintained a good market position across the
extended in 2011 to include emission level readings,
full spectrum of the sector by continuing to respond to
certification and environmental reporting. In doing so,
pricing concepts requested by the sector and by
GasTerra was responding to market needs. In 2012,
31
GasTerra’s account managers actively promoted this
Eni Arbitration
broader range of EPI options to their customers. This
It is common practice for interim price renegotiations to
resulted in a growing number of projects initiated on
be held for long-term contracts. These contracts include a
behalf of various industrial customers in 2012. In doing
Overseas Sales
provision allowing both parties to submit their dispute for
Procurement
arbitration in the event that parties are unable to reach a
so, GasTerra has been demonstrating supply chain
management accountability to its users. The stakeholder
GasTerra sold 48.6 billion m³ of gas to foreign
mutually acceptable agreement. In 2007, GasTerra
GasTerra procured a total of 83.4 billion m³ of gas
analysis conducted by GasTerra in 2012 revealed that
customers in 2012. This volume remained the same
requested arbitration following failed negotiations with
in 2012. This is 3.3 billion m³ less than in 2011
stakeholders appreciated GasTerra playing a leading role
as that sold last year. Gas trading points such as the
the Italian company Eni. GasTerra was of the opinion that
(86.7 billion m³).
in this respect (see p. 45).
TTF were established as a result of the liberalisation
it was entitled to increase its prices for gas supplied from
of the natural gas market. Oil price linking – a
2006 on, based on market trends for the period from
Groningen Gas Field
Provision of Information and Contracting
characteristic of long-term export contracts – has
2003 to 2006. This price increase was awarded by the
GasTerra procured 47.2 billion m³ of gas from the
Energy companies in GasTerra’s customer portfolio have
thereby been joined by gas index linking. Pricing
arbitrator in 2012. Another arbitration case relating to
Groningen gas field. This constitutes fifty-seven per cent
had access to a customer portal where they can view
formulas often result in a mix of oil and gas index-
another Eni contract has not yet been adjudicated.
of total procurement. This was 2.4 billion m³ more gas
pricing and contract bulk volumes since 2011. GasTerra
linked prices during regenotiations scheduled
than was purchased from this field with respect to 2011.
will be providing wider access to this service by opening
throughout long-term contracts. Increased trading
This can be attributed to rising demand for Groningen
it up to its export and industrial customers. Particular
levels at virtual trading points and the intensified
gas caused by lower temperatures in 2012 with respect
attention is being paid to currency of information and
competition and price volatility that ensued has put
to 2011. The Dutch government has set a ceiling for the
user-friendliness. In 2013, GasTerra intends to improve
pressure on export prices.
Groningen gas field of 425 billion m³ for the period from
the information available on its website about its products
2006 up to and including 2015 in light of public interests
and services. Other options to inform its customers more
GasTerra’s long-term contracts have resulted in stable
fully and more quickly about products and market trends,
export figures. This phenomenon was fittingly illustrated
Natural gas by country of destination
in 2012 with the celebration of the 50th anniversary of
in billion m3
2012
2011
export relations with the German energy company EWE.
The Netherlands
34.8
38.1
An export contract was signed by EWE and Staatsgas-
Belgium
4.7
4.7
Gas from the Groningen gas field contains relatively high
bedrijf in April 1962 – the latter being the predecessor to
France
6.1
6.7
levels of nitrogen compared to gas from other fields.
Gasunie. Over the past fifty years, some 40 billion m³ of
Germany
19.3
18.8
This results in Groningen gas having a lower calorific
gas have been traded between these two companies.
Italy
8.2
7.1
value. When the Groningen gas field was discovered,
UK
9.6
10.6
all gas appliances in the Netherlands were adapted for
Switzerland
0.7
0.7
its use. Later, smaller natural gas fields were discovered
Total
83.4
86.7
containing gas with a higher calorific value – high-caloric
Total exclusive the Netherlands
48.6
48.6
gas. Gasunie Transport Services (GTS) mixes in nitrogen
e.g. newsletters, will be addressed in more detail in 2013.
underlying legal duties imposed on GasTerra. GasTerra
procured 281 billion m³ of gas in the period from 2006
up to and including 2012.
33
at special-purpose processing facilities in order to make
In 2012, GasTerra investigated a package of improvement
Shale Gas
Sundry Procurement
high-calorific gas suitable for appliances designed to be
measures for its supply terms & conditions in order to
Shale gas may well lead to an increase in Europe’s future
In 2012, GasTerra procured a total of 10.3 billion m³ from
used with Groningen gas.
provide small field producers greater flexibility in volumes
natural gas reserves. Shale gas is natural gas extracted
other sources. This principally comprised gas imported
supplied. Firstly, GasTerra aims to provide producers the
from shale. The major difference between sandstone and
from Norway and Russia, procurement from virtual
Production levels in the Groningen gas field will gradually
option to supply gas based on production capacity, as
shale extraction lies in the porosity of the gas-bearing
trading points, e.g. the TTF and NBP. This is 4 billion m³
be declining over the next few decades. This will partly
well as on the demand for gas from GasTerra. In other
rock layer. Sandstone is more porous than shale allowing
less than in 2011. This is attributable to a drop in
result in increased supplies of high-calorific gas including
words, producers would – to a certain extent – be able to
natural gas to flow more freely and to be extracted more
procurement levels across the board from all supply
LNG. The question then arises as to whether nitrogen still
supply as much gas as they could produce rather than as
easily. Additional measures need to be taken to make
sources mentioned.
needs to be added or whether it is wiser to modify gas
much gas as GasTerra demanded. GasTerra would then
shale gas economically viable once the well has been
Norway and Russia were once again the largest foreign
appliances for use with higher-calorific gas. The Dutch
match any differences in supply and demand by utilising
drilled. The rock needs to be fractured in order to make
importers in 2012. GasTerra also imported smaller
Ministry of Economic Affairs, GTS, Nederlandse Aardolie
underground storage options. GasTerra anticipates that
it permeable enough for a gas flow to be established.
volumes from other countries. Procurement contracts also
Maatschappij (NAM) and GasTerra have commissioned
producers will be able to produce natural gas more
This process is called hydraulic fracturing or fracking. This
contain provisions for interim renegotiations in a similar
the Energy Delta Gas Research (EDGaR) consortium to
effectively and in greater volumes with this new, flexible
process involves pumping water, sand and other additives
way to sales contracts in order to keep them in line with
investigate whether the period for which gas composition
procurement arrangement in place. Secondly, GasTerra
into the borehole under pressure. GasTerra views shale
market conditions. For some time now, supply and
will remain unchanged for low-volume users can be
aims to match gas prices more closely with hub prices.
gas as an interesting future development, but attaches
demand in the Netherlands have been matched on the
extended for as long as possible. Studies revealed that the
GasTerra discussed these new concepts with producers in
great importance to safety issues and public support for
TTF. Prices at this virtual trading point set the prices for
period for which gas composition will remain unchanged
2012 and will be finalising plans with them in early 2013.
such activities. Studies will be conducted in the
the Netherlands as a whole.
Netherlands in early 2013 to assess the risks and impact
can be extended to 2030. Consequently, it is essential to
monitor Groningen/high-calorific gas supply and demand
These new concepts allow GasTerra to adhere more fully
of shale gas exploration and extraction in terms of public
VSS
very closely and if necessary to prepare an appropriate
with the Gaswet [Dutch Gas Act] that stipulates GasTerra’s
and environmental safety. No test wells may be drilled
GasTerra has been providing the private sector with
package of measures to respond accordingly.
public duty to place a bid for procurement of gas from
in the Netherlands until the results of the study have
options to contract out the storage of natural gas for
small Dutch fields, if requested to do so. Consequently,
been published. GasTerra will be following developments
volumes of up to 1.95 billion m³. This service is known as
Small Fields
every producer exploring for and exploiting gas reserves
closely and will continue to attach great importance to
its virtual storage service (VSS). VSS provides the private
GasTerra is a major purchaser of gas from the small Dutch
in the Netherlands is assured of a market for any gas
total transparency in this respect. In these early stages, it
sector an option to organise its physical portfolio more
fields. In 2012, GasTerra procured 25.9 billion m³ from
actually found at market-standard prices and reasonable
is uncertain what role shale gas extraction will play in the
easily and/or to make trading profits by procuring gas at
these fields. This is a decrease with respect to 2011 in
conditions. In doing so, GasTerra mitigates the producers’
Netherlands in the years ahead. Given the value of natural
a relatively low price, to store it virtually and then to sell
which 27.4 billion m³ were purchased. GasTerra
risks and stimulates the development of smaller fields.
gas to Dutch society, it is important that opportunities
it at a later stage at a higher price. This product is sold in
anticipates that this trend will continue, as pressure is
remain available to invest in responsible exploration and
the form of standard bundled units (SBUs) that remain
dropping in existing small fields. This is causing a decline
extraction.
valid for one storage year (April to April). Gas to be
in production that cannot currently be compensated for
injected or produced is supplied on the TTF. Available
by the discovery of new small fields.
SBUs – a total of over 13.2 million – are offered via an
35
Natural Gas
83 billion m3
Food
1 billion people
GasTerra when expressed
in terms of food?
food for 1 billion people
of energy consumed in the
form of food and drink by
one billion people.
independent entity, the APX ENDEX. In February 2012, all
however relatively general, whereas GasTerra is
SBUs were fully sold for the second year in a row. In
principally interested in peak winter demand for its gas.
November 2012, the APX ENDEX organised its first
In 2009, GasTerra and NAM requested that the KNMI
auction for the period April 2013 to April 2014. Two
study current and future lower-temperature scenarios.
million SBUs were sold at this auction. The second auction
These studies were completed in 2012. The study also
for the year 2013/2014 will be held in February 2013.
confirmed global warming, in line with previous
expectations. Consequently, there is no reason for
Gas Procurement Footprint
GasTerra to alter the basic assumptions currently being
GasTerra has conducted studies into its gas procurement
adopted. Furthermore, the KNMI also concluded that
footprint as part of its CSR policies. This involved
future cold spells would follow current patterns in terms
examining CO2 emission levels per m³ of natural gas
of both progression and duration. Recent winters may
produced, processed and transmitted to neighbouring
therefore be used as good examples on which to base
countries. This study revealed that Dutch gas is extracted
forecasts. In 2013, the KNMI will be presenting its next
to the highest international standards and transmitted
set of climate scenarios. GasTerra will determine whether
the shortest distances. Gas produced in the Netherlands
any reasons exist to adjust its planning assumptions based
therefore has a smaller footprint than gas that Europe
on these scenarios.
imports from other countries. Gas traded by GasTerra
therefore has a favourable footprint given that GasTerra’s
portfolio largely consists of Dutch gas. Gas’ footprint with
regard to extraction and transmission is relatively low
compared to usage.
Total
World Population
Climate Studies
A portion of the demand for gas is temperature
dependent. In order to guarantee its contractual supply
obligations, GasTerra evaluates its planning with respect
to various climate scenarios. In doing so, it bases its
studies on pre-defined, standard climate scenarios
One billion
people
published in 2006 by the Koninklijk Nederlands
Meteorologisch Instituut (KNMI) [Royal Netherlands
Meteorological Institute]. These climate scenarios are
37
Transmission Capacity Allocation
Balancing
The European Commission and EU member states are
A draft code for harmonising European balancing systems
also addressing the Capacity Allocation Mechanism (CAM)
is currently being assessed by the European regulators.
network code that is aimed at allocating new and existing
The balancing system arranges how gas entry and exit is
Transmission
European Legislation
transmission capacity more efficiently. One of the
managed by network users and, if necessary, the network
GasTerra acquires the right to feed gas into transmis-
The Third Energy Package took effect in the
components of the proposed network code is that
operators themselves. The Dutch balancing system was
sion networks at entry points and to extract gas from
Netherlands in 2011. This package is aimed at
transmission capacity should be consolidated at border
drastically overhauled in 2011. This system can largely
exit points by procuring transmission capacity.
promoting cross-border competition, greater
points.
be retained based on the proposed draft code. GasTerra
customer choice and more competitive rates. This
Transmission capacity is provided by the transmission
was implemented still further in 2012.
agrees to the proposal.
Congestion
The European Commission finalised its Congestion
Tariffs
the operator of the Dutch national gas transmission
Internal Energy Market
Management Procedures (CMP) guidelines in 2012. Parties
A start has been made on drafting a network code
network. GTS’ tariffs are regulated by the Netherlands
European government leaders are heralding 2014 as the
have to reserve the transmission capacity in advance that
containing guidelines for transmission tariffs. Tariff
Competition Authority (NMa). GasTerra also procures
year in which the internal European energy market comes
they anticipate using. Sometimes, capacity shortfalls arise
systems are intended to reflect the costs of transmission
transmission capacity from BBL Company and National Grid
into full effect. With this in mind, European legislative
and at other times, shippers’ reserved capacity is not fully
to the greatest extent possible. Cost structures do
for export to the United Kingdom. Total costs for procuring
activities in 2012 focused on strengthening the position
utilised. These guidelines are intended to resolve
however vary from country to country. GasTerra is of the
transmission capacity in 2012 were €505 million. This is
of the consumer, on achieving greater liquidity on
contractual congestion problems at border points. The first
opinion that a one-size-fits-all approach will not work.
a decrease of €203 million with respect to 2011. This is a
wholesale markets and on harmonising access to inter-
measures will be implemented on 1 October 2013. The
Initial proposals appear to have made some compromises
continuation of the trend that emerged in previous years.
national transmission systems. The last category of
CMP guidelines contain various procedures including those
in this respect.
This drop can partially be attributed to increased trading
measure potentially has the greatest implications in store
for sale of greater capacity than is available (overbooking
levels on the TTF. GasTerra only pays for entry costs when
for GasTerra.
and repurchasing arrangements), return of contracted
Investment Procedures
system operators (TSOs). GasTerra’s principal TSO is GTS,
trading at virtual points. The purchasing party pays the exit
capacity, and fixed day-ahead and long-term use it or lose
The capacity allocation code regulates the allocation of
costs. In addition to structural tariff reductions, temporary
Legislation concerning access to transmission systems is
it mechanisms. The last mechanisms are drastic measures
existing transmission capacity, but does not address how
GTS tariff reductions also contributed to lower transmission
being drafted in greater detail in the form of European
that GasTerra believes should only be used as a last resort.
or when investments are needed in additional capacity or
costs in 2012. These were the result of GTS’ commitment
network codes. Transmission companies, network users
It is still unclear what these guidelines hold in store for
what signs on the market might prompt new investments.
to retroactively reimburse the market approximately €400
and regulatory bodies have been involved in drafting
the Netherlands. The principal question for the Dutch
These issues may potentially be addressed in a new code
million for the years 2012 and 2013.
these network codes. The European Commission shall
regulator is whether contractual congestion exists at Dutch
as a supplement to existing codes. GasTerra places great
formalise these codes on approval by the member states
border points and if so, what measures are the most
importance on the role played by the private sector with
and once member states have made their opinions
suitable for tackling this congestion.
regard to consumers not having to foot the bill for
known.
unnecessary investments. In the Netherlands, the openseason procedure has been adopted whereby private-
39
sector companies are free to register for any additional
Financial Regulation
Legislative Streamlining
transmission capacity. GasTerra prefers this arrangement,
Europe is currently amending its financial regulations
The Dutch government is currently revising the
as long as it is adapted to match existing best practice
as a result of the global financial crisis. A sector-specific
Elektriciteitswet [Dutch Electricity Act] and the Gaswet
models.
regulation was approved in 2011 for the energy sector –
Dutch Legislation
Regulation in Energy Markets Integrity and Transparency
[Dutch Gas Act] to achieve simplification, fewer rules and
less ambiguity. GasTerra is positive about this initiative.
Energy Transition in Europe
(REMIT). This includes a prohibition on insider dealing
Energy policy was also a topic of discussion at a
At the end of 2011, the European Commission presented
and market manipulation. GasTerra has established a
national level in 2012.
its Energy Roadmap 2050. This document discussed
compliance programme to prevent insider trading and
possible paths to reducing greenhouse gas emission
market manipulation (see p. 62). In 2012, GasTerra placed
Energy Transition in the Netherlands
and GasTerra agreed to a package of measures aimed
levels in Europe by eighty to ninety-five per cent by 2050
a REMIT announcement on its website on one occasion.
The Dutch government aims to promote production of
at improving market competition. These measures have
with respect to 1990. This roadmap forms the basis for
The regulation also stipulates that traders have to report
renewable energy supplies and has raised its goals for
been very successful, e.g. GasTerra’s virtual storage service
several of the Commission’s policy-making activities that
their deals to European regulators. The regulators are still
the share of renewable energy by 2020 from fourteen to
has been met with great interest and trade on the TTF
may affect the role of gas in the future energy supply. For
working on the details of this reporting system.
sixteen per cent. The question as to which policy tools will
has grown spectacularly. In GasTerra’s opinion, market
instance, studies are being conducted to investigate how
Regulation on OTC derivatives, central counterparties
be used to achieve these goals has yet to be answered –
intervention is unnecessary other than implementation of
the CO2 emissions trading system can be improved. This
and trade repositories – known as the European Market
continuation of subsidy-based policies or the commitment
European network codes.
system aims to reduce greenhouse gas emission levels
Infrastructure Regulation (EMIR) – also came into effect
from suppliers to produce a certain percentage of their
at the lowest cost possible. An essential question in this
in 2012. The Markets in Financial Instruments Directive
total energy supply from renewable sources? The Dutch
respect is the extent to which this system is affected by
(MiFID) is also currently being discussed by European
government also aims to make small-scale, localised
alternative policy-making tools that are specifically aimed
bodies. The applicability of this financial regulation to
power generation more viable.
at promoting renewable energy sources and energy
GasTerra depends on the definition of the term financial
The Dutch government is endeavouring to achieve wider
efficiency. An interim European goal needs to be
instrument and options for indemnity. GasTerra’s products
public support for its energy plans for sustainable growth.
formulated for the period up to 2030. GasTerra is a pro-
are physically supplied to end users and therefore are not
The Social and Economic Council of the Netherlands (SER)
ponent of an ambitious goal aimed solely at CO2 emission
covered by the definition of a financial instrument. This is
is providing a platform for implementing these plans in
level reductions.
why it is not anticipated that this regulation will be
2013. GasTerra would be glad to contribute towards
GasTerra is an active member of several platforms
applicable to GasTerra.
implementing such an agreement.
involved in gas advocacy activities. Its aim in this respect is
not only to make it clear that gas can play a major
facilitative role in the transition to more sustainable
energy sources, but that it also plays a continuing role
in an economy in which greenhouse gas emissions have
largely been eliminated.
Market Competition
In 2011, the Netherlands Competition Authority (NMa)
41
Natural Gas
83 billion m3
Work
2.2 billion people
terms of human work?
documentation and reporting. The basic premise is that
line management throughout the entire organization is
Risk Management
of energy generated by
2.2 billion people cycling
non-stop for the duration
of one year.
responsible for identifying risks and responding
appropriately to mitigate these risks.
Risk management plays a crucial role at GasTerra.
Review
Sound risk policies allow our company to concentrate
GasTerra regularly reviews the effectiveness of its risk
fully on its core business, i.e. trading in natural gas,
management policies and procedures by carrying out
without being faced with any unpleasant surprises.
internal audits. Activities are assessed across all
departments and at all levels on an annual basis. These
Approximately 2.2 billion people
cycle non-stop for one year
Risk management is firmly embedded within our
assessments are summarised in the Document of
company’s processes and is an integral part of
Representation. All these risk-related activities are
management control processes. This manifests itself in
supervised by the Audit Committee appointed by the
the form of a planning and control cycle and a system of
Board of Supervisory Directors.
business controls.
Principal Risks and Uncertainties
83 billion m of natural gas =
work output of 2.2 billion people
3
Planning and Control Cycle
At regular risk meetings, we pinpoint the principal risks
GasTerra drafts a strategic plan every year for its planning
and uncertainties facing GasTerra. In doing so, strategic,
and control cycle. This plan is based on anticipated
operational and financial risks are examined, as well as
developments on the European gas market and
financial reporting, legislative and regulatory risks.
incorporates strategic long-term decisions. We then
Principal risks and uncertainties include the following
translate these into short-term and medium-term business
issues:
plans and budgets. Results are compared to targets set
in the business plan in monthly and quarterly reports.
Price Risks
This is carried out in a structured fashion based on
Turnover from gas sales and natural gas procurement
management control standards that require risk and
costs are closely related to gas and oil prices. These gas
management measures be analysed at various levels.
and oil prices are set on free trade commodity markets
and can vary greatly in response to supply and demand
Business Controls
forecasts. Gas supply and procurement prices are set at
The business control system also has a set structure. It
various instants prior to delivery. It is essential that these
consists of risk analyses, control measures,
price risks be monitored carefully. In doing so, GasTerra
43
uses a system whereby prices set in contracts are
order to be able safeguard delivery security as stipulated
and regulations. This sub-objective formed part of one of
reviewed against various price references. This allows
in its contracts. GasTerra has been adapting its planning
its main CSR objectives – Gas 5 (see p.47). GasTerra also
the type of price-fixing and the moment of pricing to be
procedures in response to these trends, so that delivery
wanted to map out gas’ production and transmission
monitored carefully and to be adjusted, if necessary.
security can be safeguarded in the future based on
footprints. This formed part of another of its main CSR
objectives – Green 1 (see p. 47). Progress towards
contractual obligations and efficient operations. In doing
Customer Creditworthiness
so, GasTerra is making major strides towards achieving
GasTerra’s mission states that GasTerra shall
achieving these objectives was reported each quarter to
GasTerra has implemented credit policies that require
one of its main CSR objectives – Gas 3 – to safeguard
endeavour to maximise the value of Dutch natural
the Board of Management and shareholders. The
customers to provide additional security if deemed
delivery security (see p. 47).
gas reserves. This mission statement serves as the
objectives mentioned above, as well as the majority of
basic premise for setting goals, including its corporate
the other sub-objectives, were achieved. The CSR board
social responsibility-related objectives.
established in 2010 monitored the progress and
insufficiently creditworthy, as it is common practice to pay
in arrears for gas supply contracts.
Financial Energy Market Regulations
integration of CSR policies into GasTerra’s total business
Financial regulations are currently being amended at a
Commercial Renegotiations
European level (see p. 38). A portion of the sector-specific
Consolidation
cycle.
Long-term gas procurement and sales contracts generally
REMIT regulation took effect in 2011. The remainder of
The word ‘value’ in our mission statement relates to the
This report is based on the Global Reporting Initiative’s
contain renegotiation clauses that allow the contract’s
these regulations and their impact on GasTerra’s
public, economic and ecological importance of natural
third-generation guidelines (G3.1). A GRI Table has been
terms & conditions to be amended under certain
processes and systems are still highly uncertain, which is
gas as a source of energy. Public and economic interests
included in the index (see Appendix 2) that lists which GRI
conditions during the contract’s term. GasTerra conducts
why GasTerra will continue to follow these developments
manifest themselves as the sale of Dutch gas and the
indicators can be found in this report. GasTerra has only
regular negotiations and renegotiations with suppliers
very closely.
performance of legal public obligations to promote small-
reported on those tangible sustainability issues that are
field production as part of Dutch small fields policies.
applicable to the company in accordance with GRI guide-
and sales contracts. It is not possible to arrive at a reliable
Borrowing Requirements
Ecological interests arise from the fact that gas is the least
lines. These were selected in consultation with the various
estimate of the outcomes of these renegotiations.
GasTerra only has short-term borrowing requirements that
polluting fossil fuel and that it plays an important role in
layers of management involved.
are hedged by GasTerra’s commercial paper programme
the transition to more sustainable energy sources, as well
of €1 billion and committed credit lines of €50 million.
as a continuing role in an economy in which greenhouse
GasTerra opted to have its report assessed against GRI
gas emissions have largely been eliminated. At GasTerra,
guidelines by an external party. According to the
and customers concerning its long-term gas procurement
Increasing Planning Uncertainty
Gas procurement from the Groningen gas field is highly
temperature-dependent, but other factors also play a role.
Governance
these public, economic and ecological interests have been
assessment, we met the C+ standard as we did last year.
Market liberalisation and developments on the TTF offer
Governance at GasTerra has been outlined in Appendix 4
embedded into the company cornerstones – Gas, Green
Setting a higher standard is not realistic at this moment. A
GasTerra’s customers a wider range of options to procure
on its website.
and Groningen.
large portion of the GRI guideline indicators are aimed at
companies with physical production processes requiring
gas from other suppliers. It has therefore become more
difficult to predict how customers will utilise the volume
Objectives in 2012
raw materials, consuming high levels of energy, and thus
flexibility provided for in our gas contracts. This has
In 2012, GasTerra translated its main CSR objectives (see
producing waste and emitting harmful gases. These were
prompted GasTerra to hold back additional resources in
p. 47) into twenty-eight tangible sub-objectives. These
not all applicable to GasTerra. We are a trading
included actively informing its employees about legislation
organization and were unable to report on these indicators.
45
Stakeholder Dialogue
Businesses maintain relations with countless groups
to these stakeholders’ actions and they therefore
dialogue. Given our relocation, it was also deemed
security of supply and delivery. Both issues were felt to be
play an essential role in GasTerra’s policy-making.
essential to approach local residents. Industrial
important, but stakeholders indicated that they thought
Meaningful interaction with stakeholders can only be
associations have not yet been involved in stakeholder
GasTerra’s role in this respect was limited. According to
achieved if we actually listen to them. This conviction
dialogues because it is believed that the industry’s
stakeholders, responsibility for long-term supply security
forms the basis for GasTerra’s annual stakeholder
opinions are very closely aligned with those of GasTerra.
rested with the market. In terms of short-term delivery
dialogue.
security, GasTerra only had to fulfil its contractual
Stakeholder Analysis Results
obligations. It is the direct supplier’s responsibility to
businesses’ activities for one reason or another –
In 2012, GasTerra consulted with its stakeholders (see
The stakeholders approached explained their choices to a
ensure delivery security in the event of a serious incident
these are the stakeholders. In addition to the obvious
diagram) for the second time about tangible issues.
GasTerra employee using the completed questionnaire.
or cold weather. GasTerra was generally not the direct
stakeholders such as shareholders, customers and
Last year’s questionnaire on tangible issues and their
They were also given the opportunity to present their
supplier and therefore had very little contribution to make
employees, stakeholders also include organizations
associated definitions were used as the basis for the
own supplementary tangible issues, but no use was made
in this respect.
and bodies with specific interests, e.g. national and
stakeholder dialogue. The term supply chain management
of this option. As in 2011, all stakeholders felt that
European governments and associated political
was split into upstream supply chain management
GasTerra’s social and economic contributions were very
The stakeholders interviewed also indicated that they felt
bodies, especially governing bodies, NGOs and the
(from source to GasTerra) and downstream supply chain
important. Principally the shareholders, suppliers and
it to be important that GasTerra adhere to regulations and
media. The company’s very existence is directly linked
management (from GasTerra to the customer). We also
employees felt that it was important for GasTerra to
that it operate transparently. Diversity on the work floor,
critically examined the definitions, clarifying them
capitalise mineral resources as fully as possible. This is
equal opportunities and career advancement were also
wherever necessary in response to feedback from
aligned with our mission statement. The stakeholders
felt to be important issues, as were GasTerra’s efforts to
stakeholders on the 2011 dialogue.
interviewed also foresaw a major role for GasTerra in the
minimise its burden on the environment as a result of its
process of energy transition – primarily in the fields of
operations. No significant shifts in opinion are expected
Six stakeholder groups were consulted in 2012. As in
research, knowledge sharing and promoting natural gas’
with regard to these topics.
2011, the questionnaire was presented to shareholders
role. GasTerra has been working on these areas with its
and customers – two stakeholder groups important to
educational and knowledge-sharing projects, its
The foremost tangible issues arising from the stakeholder
GasTerra. Various departmental employees, producers and
Environmental Plan for Industry and projects focusing on
analysis were linked to the main CSR objectives and
policy-makers also took part in the stakeholder dialogue.
local applications. As part of the energy transition
incorporated into the matrix at p. 47.
GasTerra also approached two media parties, but they
process, accountability of GasTerra’s supply chain
indicated that they did not wish to participate in the 2012
management towards customers and users was felt to be
Stakeholder Analysis Evaluation
dialogue. In 2011, one NGO was consulted. No signi-
very important. The parties consulted also indicated that
The stakeholder dialogue is one of the cornerstones upon
ficant shifts had been anticipated within this particular
they felt it to be very important that GasTerra invest in the
which policies, the annual report and the business plan
stakeholder group, which is why it was not approached
local community (Groningen).
are based. Given that no major shifts in opinion arose as
in 2012. These organizations will be approached again in
Upstream supply chain management was not deemed to
compared to the 2011 stakeholder analysis, no significant
2013 and asked to participate in the stakeholder
be GasTerra’s responsibility. The same applied to
alterations shall be made in these respects. GasTerra
and individuals who have an interest in these
NGO's
NMa/DTe
Media
Government, politicians,
parliamentaries
Environment
Trade
organizations
Customers
Shareholders
Producers &
suppliers
Personnel
Main CSR Objectives for 2012
Community
Investments
Every year, GasTerra drafts a business plan. This contains
Security of Supply
and Delivery
CSR/Business Plan Integration
Supply Chain
Management
Accountability
2013 and subsequent years.
Compliance/
Competition Law
Stakeholders will once again be asked for their opinions in
Energy Transition,
Research and
Development
Tangible Issues
hereby concludes that it is charting the correct course.
Financial Results/
Impact on Natural
Gas Revenues
GasTerra’s foremost activities for the years ahead cast in
Gas 1
Contributing to natural gas revenues
x
the light of current and anticipated developments on the
Gas 2
Developing commercially appealing products
x
Gas 3
Safeguarding customers’ delivery security in line with
market standards and legislation
x
Gas 4
Promoting gas as a relevant fuel in the future energy mix
x
Gas 5
Adhering to external legislation and regulations, as well
as internal codes of conduct and procedures
Green 1
Promoting efficient use of gas
x
x
Green 2
Sharing knowledge about making energy supplies more
sustainable and increasing understanding of natural gas’
role in the energy transition
x
x
Green 3
Promoting sustainable business practices
Groningen 1
Establishing a pre-eminent knowledge centre for energy
supply sustainability in Groningen
x
x
Groningen 2
Actively and visibly participating in Groningen society
x
x
north-west European gas market. GasTerra endeavours
to operate in a proactive, structured and socially
responsible manner with regard to all its activities. This is
why we opted to fully integrate our CSR objectives into
our business plan in 2013. GasTerra will therefore no
longer refer to a CSR policy as a separate entity. Reporting
x
x
x
x
x
forms an important part of monitoring the objectives set
in the business plan, so that it is possible to determine if
and to what extent progress is being made.
x
49
Natural Gas
83 billion m3
Wind Turbines
24.000 turbines
terms of wind power?
Reading the market, it would appear that demand for
green gas currently outstrips supply. GasTerra is actively
Green Gas
looking to expand its green gas portfolio by approaching
parties with a positive REIS programme (Renewable
Energy Incentive Scheme) for green gas production
when converted to
electricity is the same as the
amount of energy generated
by 24,000 5-MW wind
turbines.
GasTerra started actively trading in green gas in 2012.
projects. Sugar producer Suiker Unie, waste management
and energy utility company HVC and energy supplier
Green gas is produced by means of waste or manure
Greenchoice all started supplying GasTerra with green gas
fermentation, or biomass gasification. Enriching this gas
in 2012.
allows gas to be produced with the same quality and
24,000 offshore
wind turbines
24,000 wind turbines
properties of natural gas. Hence, it can be supplied to
Suiker Unie
customers via the existing transmission network. The
In 2011, GasTerra signed declarations of intent with
major advantage of green gas is that it is a renewable
Suiker Unie and bio-fuel producer BioMCN for the annual
energy source. It is therefore a fully renewable alternative
procurement and sale of over 10 million m³ of green gas.
to natural gas. This is why GasTerra is an advocate of
In 2012, these declarations were converted into
green gas production. Currently, relatively low volumes of
procurement and sales contracts. Suiker Unie will be
green gas are being produced, but production capacity
producing 10 to 12.5 million m³ of green gas per year by
over the next few years will grow rapidly. To help promote
fermenting leftover sugar beet. We will be purchasing this
this process, GasTerra entered into a Green Deal
green gas and delivering it to BioMCN with a Vertogas
agreement with the Dutch government and the private
green gas certificate. This company will be using the
sector in 2011 specifically for green gas. GasTerra has
gas to produce second-generation bio-methanol. Suiker
committed itself to trading all the green gas transmitted
Unie’s biomass fermentation plant officially started pro-
via national transmission networks as long as it is at a
duction on 21 November 2012.
going market price and is certified (see p. 50).
HVC
Supply and Demand
HVC also started supplying green gas to GasTerra in
As mentioned, the supply of green gas has until now
2012. In doing so, this waste management and energy
been fairly limited in terms of both volume and the
utility company became both a customer and a supplier
number of suppliers. Green gas production costs are
to GasTerra. In its first year, HVC supplied approximately
significantly higher than current market prices for natural
1 million m³ of green gas. HVC uses an entry point on
gas. As well as that the supply of biomass is also limited.
the high-pressure transmission network in Zwolle (unique
51
in the Netherlands) and the low-pressure transmission
Stichting Groen Gas Nederland
the largest portion of which was allocated to the Energy
network in Middenmeer. In 2013, it is anticipated that
The Stichting Groen Gas Nederland (GGNL) [Dutch Green
Transition Model (ETM). The foremost projects under-
HVC’s production will be ramped up to over 4 million m³.
Gas Foundation] signed a partnership agreement with the
taken in 2012 have been outlined below. A listing of all
GasTerra will also be procuring the green gas produced by
Energy Delta Institute (EDI) in 2012. These
HVC in 2013 and 2014.
organizations – partly financed by GasTerra – together
knowledge-based and educational projects can be found
in Appendix 7 on our website.
aim to make knowledge about green gas more accessible
Knowledge and education enable the energy sector
Greenchoice
1by holding seminars, producing educational material
and society to find answers to current and future
Energy Transition Model
A green gas procurement contract was also signed with
and publishing online. GasTerra also actively contributes
energy-related issues. GasTerra views it as its duty
GasTerra is the main sponsor of the ETM developed by
Greenchoice in 2012. This agreement covers the
to sharing knowledge about sustainable gas supplies. In
to help spread and add to this knowledge, and to
Quintel Intelligence. This model allows the effects of
procurement of green gas from six production facilities.
2012, we published a book about green gas in the series
support educational activities in this field. This is not
energy-related choices to be visualised. The ETM is
GasTerra absorbs variations in Greenchoice’s green gas
De Wereld van Aardgas [‘The World of Natural Gas’].
only important to the energy sector as a whole, but
accessible online at www.energietransitiemodel.nl.
production levels in its own portfolio and then supplies
also provides a service to society at large. Society can
gas back to them in the required profile.
only tackle its energy-related challenges if it can make
Energy Podium Debate and Energy Podium Dinners
responsible decisions based on sufficient information
The debating site www.energiepodium.nl – a GasTerra
Certification
and unbiased consideration of economic and
initiative established in 2011 to promote energy sector
GasTerra does not want to procure any green gas that
ecological interests. This is why GasTerra has included
dialogue – appears to be a great springboard for initiating
cannot be adequately verified as being green in origin.
the provision of information about sustainable energy
other activities that are aligned with GasTerra’s
This is why we have imposed four conditions in this
supplies as one of its main CSR objectives (see p. 47).
knowledge-based and educational objectives. In 2012,
respect (see Appendix 6 on our website). GasTerra is
the second Energy Podium Debate was held in the
prepared to procure gas labelled as green gas if its
In order to continue building a future based on renewable
presence of a hundred energy experts. At various
producer or the production facility satisfies one or more
energy supplies, GasTerra aims to broaden knowledge
locations throughout the Netherlands, twelve Energy
of these conditions.
about energy among young people, policy-makers,
Podium Dinners were also organised at which a group of
executives, decision-makers and other stakeholders. This
energy-sector executives, politicians, business owners,
is a subject area that stakeholders felt was an important
scientists and environmental experts discussed a
role for GasTerra to play (see p. 46). GasTerra has been
pre-defined topic aided by the Energy Transition Model.
fulfilling this role with initiatives including television
To date, 134 people have participated in these dinners.
programmes Green Dream District and Watt Nu? [‘Watt
Now?’], and educational material for HAVO [Dutch senior
general secondary education] and VWO [Dutch preuniversity education] curriculums. In 2012, GasTerra
invested €2.4 million into knowledge and education,
53
Energy Academy Europe
Convention on 20 September 2012. Project partners
Project Delta Group
GasTerra is actively involved in the Energy Academy
noted that users experienced no negative effects even
The Project Delta Group (PDG) is a public-private partner-
Europe (EAE) and thereby works very closely with the
at levels of up to twenty per cent hydrogen. The mixture
ship. The Dutch Ministry of Economic Affairs, Dutch
University of Groningen, the Hanze University of Applied
also appeared to have had no detrimental effects on
knowledge institutes and the Dutch business world joined
Sciences Groningen and the Energy Valley Foundation.
various types of piping and gas appliances in use, e.g.
forces as part of this partnership, as did GasTerra. For two
The EAE plays an important role in achieving one of
HE boilers and stoves.
years now, the PDG and the Russian natural gas company
GasTerra has gained extensive experience and
Innovation
Gazprom have been working together to promote
expertise relating to natural gas’ role in the Dutch
establish a pre-eminent knowledge centre for energy
World Gas Conference
technological innovation and project-based cooperation
energy supply. Consequently, we can guarantee the
supply sustainability in Groningen (see p. 47). The EAE
GasTerra is a member of the International Gas Union
between both nations aimed at advancing sustainable
quality of our products and services. However, this
opened its doors in September 2012 admitting three
(IGU). The IGU promotes knowledge sharing between
energy sector development. Gazprom has been applying
expertise also allows us to explore the energy sector
hundred students looking to follow energy-related
members to advance the gas sector’s technical and
the results of this partnership by reducing the
for other sustainable options that have hitherto
study programmes. The aim is to expand this number to
economic progress, and to act as a sector lobbyist. Once
environmental impact of new projects in terms of their
remained unexplored. In doing so, we promote the
three thousand students in ten years’ time by admitting
every three years, the IGU organises a World Gas
CO2 emissions, landscape pollution, burn-off and light/
efficient usage of natural gas – one of our main CSR
overseas students as well. Consequently, the EAE will be
Conference (WGC) somewhere in the world. The event
noise emissions. In 2012, the independent Clingendael
objectives – Green 1 (see p. 47).
growing in the years ahead to become a pre-eminent
consists of a convention and a trade fair. In 2012, the
International Energy Programme (CIEP) published a
international institute of education for energy-related
theme was Gas: Sustaining Future Global Growth. Various
briefing paper about this partnership programme under
As the driving force behind various innovative projects,
studies – an internationally respected centre of excellence.
natural gas-related topics were addressed during discus-
the title Energiediplomatie nieuwe stijl: Publiek private
we look to find new insights and energy applications for
It aims to achieve this by investing in education, research
sions, presentations and workshops. GasTerra participated
samenwerking [‘New-Style Energy Diplomacy – Public-
ourselves and our sector partners. This is just one way in
and innovation.
in the trade fair together with Dutch companies A. Hak,
Private Partnership’]. This acknowledged the benefits of
which GasTerra is contributing to the future of energy.
GasTerra’s main CSR objectives – Groningen 1 – to
APX-ENDEX, DNV Kema, EBN, Energy Delta Institute,
public-private partnerships and postulated that a similar
The most innovative development in recent years has
Ameland Hydrogen Convention
Gasunie and TNO. Joint staffing on the stand was aimed
approach would also be applicable to partnerships with
been the further refinement of the fuel cell. A listing of all
The energy sector has been experimenting for some time
to demonstrate that the Netherlands is a true natural
other countries.
the innovative projects in which GasTerra was involved in
now with techniques to produce hydrogen using
gas nation and that we have a lot of expertise relating
sustainably generated electricity. Energy surpluses can
to various aspects of the natural gas supply chain. This
then be stored or deployed differently in a quick and
was put into words under a joint banner – The Power of
Fuel Cells
timely fashion. GasTerra, Eneco, Joulz and Stedin have
Dutch Gas.
GasTerra aims to test fuel cells on a wider scale and in
2012 can be found in Appendix 7 on our website.
been testing the effects of mixing hydrogen into the gas
various built and residential environments. These cells are
supply in fourteen homes at the Noorderlicht apartment
small-scale CHP plants that use natural gas to generate
complex in Nes (Ameland). Hydrogen has been injected
heat and electricity in a particularly efficient fashion. The
into natural gas mains there since 2007. Results for this
Apeldoorn-based research institute Kiwa will be
pilot project were presented at the Ameland Hydrogen
performing studies on this type of fuel cell on GasTerra’s
55
Natural Gas
83 billion m3
Solar panels
3100 m2
terms of solar panels?
behalf until the end of 2013. The aim of this research is
to determine which fuel cells are the most suitable for use
in Dutch built environments. Fuel cells are being sent to
Apeldoorn from all over the world and adapted for use
Sponsorship
with Groningen natural gas. Fuel cells will then be tested
83 billion m³ of natural gas,
when converted to electricity,
3100 km² of solar panels.
for efficiency and emissions. If fuel cells prove to be
Businesses sponsor worthy causes and GasTerra is no
suitable for use in Dutch homes, then they will be
exception in this respect. In doing so, we primarily
subjected to long-term trials. If these trials prove positive,
focus on the city and region of Groningen – and
then a pilot project will follow in homes.
for good reason. The major portion of GasTerra’s
Fuel cells have already been installed in homes in Haren
is located in Groningen. In short, although we are a
This is an area approximately
comparable to the size of the
Province of South Holland.
(Groningen), Amsterdam and more recently – in 2012 –
major player on the European gas market, we remain
at the EnTranCe energy test bed at the Hanze University
primarily a Groningen company. In doing so,
of Applied Sciences Groningen (ten units). GasTerra is
GasTerra aims to achieve one of its main CSR
also making preparations to connect fifty fuel cells to the
objectives – Groningen 2 – to actively and visibly
electricity grid in Ameland in 2013. This is part of a virtual
participate in Groningen society (see p. 47). By
power plant project that also incorporates a solar panel
sponsoring, we aim to achieve four objectives – to
farm. Fuel cells are intended to balance the electricity
improve our name recognition and company image,
grid supply. For example, if the solar panels are producing
to establish a network of business relations, to
too little electricity, e.g. at night or in cloudy conditions,
contribute to cultural, social and sporting life in the
then the fuel cells will be activated to cover the shortfall.
city and the region, and to broaden knowledge about
Comparable pilot projects are being prepared for 2013
energy-related issues. In total, GasTerra spends €1.3
and 2014 in Heerhugowaard, Groningse Veenkoloniën
million on sponsorship.
portfolio consists of Groningen gas and our office
and Hooghalen.
Sponsorship of the premier division basketball club
3100 km2 of solar panels
3
GasTerra Flames is the most prominent of our sponsorship
activities, but the GasTerra Ladies Run, the Groninger
Museum and the Swingin’ Groningen jazz festival have
also attracted a lot of attention in recent years. GasTerra is
also the main sponsor of the Prince Claus Conservatoire
and the Peter the Great Festival. In 2012, GasTerra
57
engaged in several other new sponsorship activities. One
A listing of all the organizations and initiatives that
[‘Watt Now?’], a quiz programme broadcasted on RTLZ
of these new activities was the Tour for Life – a 1,200-km
GasTerra supported in 2012 can be found in Appendix 8
in which well-known and lesser-known experts discussed
charity cycle tour from the Italian alps to Cauberg in
on our website.
future sustainable energy sources for the Netherlands.
South Limburg (NL). GasTerra entered its own team of
Policy-makers, captains of industry and leading scientists
employees who raised over €40,000 for Doctors Without
Name Recognition Study
explained what measures Dutch government and the
Borders.
In 2012, we investigated the effectiveness of GasTerra’s
business world need to take now in order to achieve
first sponsorship objective – improved name recognition
and company image – among specific company target
groups. This study was performed by research firm
Newcom. The study focused on the general public in the
city of Groningen, the province of Groningen, the
Netherlands as a whole, NGO policy officers and
representatives from the media. The study’s results
Tour for Life – a
1,200-km charity cycle
tour from the Italian
alps to Cauberg in South
Limburg (NL).
these goals in the future. Every Sunday, two guests were
In November, we also
organised a youth chess
tournament for the first
time ever. Some 94
children aged 6 to 15
came to GasTerra’s
offices to compete in
various age categories.
asked to defend their points of view. Discussions were
Advertising
hosted by Dutch presenter Joris Putman. GasTerra and
In 2011 and 2012, GasTerra added form to its ‘I am part
four industry partners contributed to the broadcasts in
of the solution’ advertising campaign.
terms of both finances and content.
As part of this campaign, people from various backgrounds explained how they are part of the solution in
became known in February. The conclusion was that
their worlds of sport, music or GasTerra itself. Their
GasTerra’s name recognition had grown significantly in
messages were linked to a central message that
recent years in the city of Groningen. Seven years after
natural gas is also part of the solution because it forms an
its inception, fifty-three per cent of respondents knew
indispensable link in the transition to renewable energy
GasTerra. Across the whole of the Netherlands, this figure
supplies. Please visit the www.iampartofthesolution.nl
was much lower – a mere eight per cent. This should be
website for more information.
no surprise given that our sponsorship activities are aimed
GasTerra also uses the slogan I am part of the solution
at Groningen. The foremost source of name recognition
internally. For instance, employees could vote for a series
is the GasTerra Flames basketball club (77%), but by
of pre-selected charities under the slogan Vote for a
no means the only source. Sponsorship of the Swingin’
solution. The winner was Stichting Hulphond [Dutch
Groningen jazz festival and Eurovoetbal account for
Assistance Dog Foundation].
thirty-two per cent, as well as the GasTerra Ladies Run
The campaign is being continued in 2013. Waste
(26%) and exhibitions at the Groninger Museum (30%).
management and energy utility company HVC will be
Few, however, know what GasTerra is or does, even in
explaining how they are part of the solution in partner-
Groningen. Nevertheless, the company’s image is positive
ship with GasTerra. An unusual form of advertising
– GasTerra’s involvement in the community is appreciated
has been joint participation in production of television
and its motives for doing so are trusted.
programmes with specific themes closely aligned to those
of GasTerra’s CSR objectives. A prime example is Watt Nu?
59
Staffing Levels and Composition
Training and Career Development
encouraged to change job and/or department after a set
GasTerra’s workforce is characterised by its stability. Two
The 2012 training budget equated to 3.2% of the wage
period. In 2012, eighteen per cent of staff changed jobs
hundred people worked at GasTerra in 2012.
sum. GasTerra provided a wide range of individual training
within GasTerra. External secondment is also an available
Four employees entered employment at GasTerra in 2012
schemes using this budget. Training courses that GasTerra
option. Three employees made use of this option in 2012.
and nine employees left its employment.
deems essential for its staff are fully reimbursed.
GasTerra strives for optimal professional development
GasTerra attributes low numbers of employees leaving
Numerous employees followed a course of study in
New-Style Working
for all its employees as part of its staff policies. We
employment to high employee satisfaction levels (see
2012 at the Energy Delta Institute that GasTerra helped
Following initial steps towards relocation and new-style
encourage employees to develop themselves
p. 61).
establish. GasTerra reimburses ninety per cent of tuition
working in 2011, we continued investment in 2012 in
professionally and to acquire skills that are relevant
fees – assuming successful course completion – for study
internal awareness for and about the changes already
to our field of work. In this respect, GasTerra creates
GasTerra’s management team (MT) comprised four
programmes that it deems less directly relevant, but that
underway and those still to come. Examples included the
opportunities and options for career and skill
directors and four heads of department in 2012. Their
nonetheless are of added value in terms of career
migration to a new ICT environment, far-reaching
development. We also encourage on-the-job coaching
average age was 52.5. One change took place within the
development.
digitalisation (read paperless) operations and gradual
and allow employees to study, to take courses and to
management team in 2012. Maarten Blacquière stepped
Large-scale training and/or development programmes
transition to flexible, device-assisted working. Before the
receive coaching regardless of their position or age.
down as Chief Financial Officer as of 01 December 2012.
instigated by GasTerra were put on hold in 2012 in order
summer, employees were provided with additional
He was succeeded on 15 January 2013 by Maurice de
to prepare for and to relocate its office premises in March,
information in various forms about the relocation,
Age structure and m/f distribution
Wilde. De Wilde was previously finance manager for Shell
and to prepare for new-style working. GasTerra also
changes within GasTerra and implications for our work
Numbers per age group
in Gabon. GasTerra’s middle management comprised
continued its active job rotation policies whereby staff are
activities. Various resources were deployed to achieve this
Number of women (58)
Number of men (142)
including newsletters, intranet, presentations and project
twenty staff members including three women. Their
average age was 47.1.
25-29
30-34
team visits to various departments. The 2013 training and
development programme will largely be defined by the
switch to new-style working.
35-39
40-44
25
20
15
10
Total number of employees (200)
5
0
45-49
Staff Recruitment
50-54
Staff recruitment remains limited due to the stability of
55-59
the organization’s workforce. Very few employees left
60-65
GasTerra’s employment due in part to high employee
>65
satisfaction levels (see p. 61). Despite major benefits
0
5
Average employees age (40.47)
Fulltime-equivalents incl. temp. staff (211.8 fte in 2012)
10
15
20
25
30
Permanent employment contract (96%)
Fulltime-equivalents ex. temp. staff (189 in 2012)
35
such as retention of knowledge and experience, GasTerra
40
Entering
employment
4
Leaving
employment
9
Changing
job position
18%
External
secondment
3
Absenteeism
percentage
1.4
Absenteeism
rate
1.2
Number of
accidents
0
also foresees a downside in this respect. Low influx will
ultimately result in an imbalance in staff composition.
One objective of GasTerra’s HRM policies is to establish a
61
gradual turnover of its staff. GasTerra also endeavours to
announced whether a funding deficit exists or whether an
The staff council evaluates working conditions within the
Employee Satisfaction
maintain a balanced staff composition in terms of gender
additional payment is required for the GasTerra ring fence.
company on an annual basis together with the company
GasTerra attaches great importance to employee
and ethnic origin, and to recruit locally. This can be seen
The short-term recovery plan implemented in 2011 shall
medical officer. GasTerra also discusses various working
satisfaction in terms of their work activities and
in GasTerra’s participation in Noorderlink – a joint initiative
remain in force.
condition-related themes on a regular basis with a special
opportunities. Up until now, an employee satisfaction
staff council committee. In 2012, six meetings were held.
survey has been held every other year. In 2012, this survey
Netherlands have joined forces to advertise job vacancies
The original association agreement between GasTerra
Stress (burn-out) and RSI symptoms form the most
was held in the autumn. Results were made known in
on the Noorderlink website. GasTerra has not adopted
and the Stichting Pensioenfonds Gasunie was terminated
relevant risks for GasTerra’s employees. GasTerra also
December. The survey revealed that compared to similar
any target figures for women in management positions or
as of 01 January 2013 when Gasunie announced that
wants to ensure its employees’ safety on the road.
organizations GasTerra’s employee satisfaction levels are
other specific target groups, but aims for a well-balanced
it intended to alter the pension scheme. GasTerra shall
Employees who travel by car for business purposes receive
above average. GasTerra staff are generally satisfied with
composition within the organization when recruiting and
continue its participation in the fund in accordance with
a driving skills course every other year. The last training
their work activities, working conditions and
selecting new personnel. In 2013, GasTerra actively used
the original pension scheme’s terms until January 2014 by
course was held in October 2012. It is prohibited for
management. They gave their employer an average score
LinkedIn for staff recruitment purposes. We also placed
means of a temporary association agreement. In this time,
GasTerra employees to make telephone calls while driving,
of 7.5.
news, reports and interesting energy-related insights on
GasTerra will be exploring options for a new pension
as studies have shown that even hands-free calling results
our LinkedIn page.
scheme.
in a higher likelihood of an accident.
in which various large employers across the northern
This was an increase of 0.1 with respect to 2011. In order
to assess the impact of relocation and new-style working,
Employment Terms & Conditions
Health and Safety
In 2012, no accidents were reported to GasTerra.
it has been decided to hold another employee satisfaction
The applicable collective labour agreement expired on 01
The mandatory Risk Inventory and Evaluation (RI&E)
Absenteeism is also encouragingly low at 1.4%. In 2012,
survey at the end of 2013.
January 2012. GasTerra and company trade union VPG²
revealed that the risks at GasTerra as an office
the absenteeism rate, i.e. the average no. of incidents of
agreed on a new collective labour agreement for the
organization were very limited. Personal health, safety and
employees reporting sick per employee per year, was 1.2.
period from 01 January 2012 to 01 January 2013.
the environment nonetheless remain the highest priority
GasTerra implemented a system of confidants, complaints
Discussions about a new collective labour agreement
at GasTerra. In October 2012, GasTerra therefore held an
procedures and a whistleblower scheme for any
started at the end of October 2012. VPG² has a very high
evacuation drill to test its company emergency response
objections, complaints and abuses that cannot be
level of membership within GasTerra – approximately
team’s (CERT) readiness and its company contingency
resolved among colleagues and managers.
eighty-five per cent of its employees are union members.
plan. Staff should be able to carry out their work as safely
Last year, the collective labour agreement applied to 176
as possible and are obliged to report unsafe situations
In 2012, no use was made of the whistleblower scheme
employees. Twenty-four employees were not covered by
immediately. In mid-2012, work started on drafting an
and no abuses were reported. None of the confidants
this agreement.
RI&E for the new office premises. It is anticipated that
was approached in the past year and no complaints were
this inventory will be completed and approved by the
submitted to the committee.
In 2012, GasTerra joined the Stichting Pensioenfonds
staff council by April 2013. The CERT organization is also
Gasunie [Gasunie Pension Fund]. At year end 2012, its
preparing itself for the pending relocation.
coverage ratio was 105%. In the course of 2013, it will be
Objections, Complaints and Abuses
63
year and is intended to make staff more aware of the
REMIT Compliance Procedures
importance and the company’s obligations to adhere to
European regulations prohibit insider trading and stipulate
legislative and other regulatory requirements applicable to
that information that might constitute insider information
GasTerra. The code of conduct and procedures discussed
be made public as quickly as possible. If GasTerra is privy
New Office Premises
below are also addressed. Potentially problematic
to insider information, then it immediately ceases trading.
GasTerra has had a Board of Management-defined
situations are pinpointed and staff are made aware of
Only once the information has been made public, e.g. via
GasTerra is relocating to new office premises in
code of conduct in place since its inception that
what they may and may not do in any given situation. In
the GasTerra website, shall GasTerra reconvene trading
Groningen city centre in 2013. The building – dating
includes standards intended to promote and
2012, ninety-six per cent of employees took the
(see p. 38).
back to the 1980s – was fully refurbished and
safeguard the quality and integrity of the way
compliance course. GasTerra also holds regular internal
GasTerra’s employees do business. These standards
audits to ensure compliance with legislation and
Whistleblower Scheme
agreement with the building’s owner, Triodos
are based on two core values – integrity and respect.
regulations. GasTerra employees may not share any
A whistleblower scheme has been in force at GasTerra
Vastgoed BV, is its Green Lease construction.
competitively sensitive information with third parties and
since 2007. Employees who uncover severe abuses and
Investments in energy efficiency will result in
All GasTerra employees receive the code of conduct on
have to explicitly distance themselves from any
whose reports fall on deaf ears within the organization
significantly lower energy bills that will ultimately pay
joining the company that they are expected to endorse.
competitively sensitive information that third parties may
can report abuses to the Chair of the Board of Supervisory
for the costs of refurbishment.
The code of conduct is also brought to everybody’s
try to impart. This ruling forms part of the Competition
Directors or the Chief Financial Officer (CFO) in complete
attention within the organization on a regular basis.
Law Compliance Programme.
confidentiality. By doing so, they need not fear reprisal or
The installation of solar panels, triple-layer glass, thermal
unfair treatment.
energy storage and LED screens raised the building’s
GasTerra has drafted various supplementary rules and
modernised in 2012. A characteristic trait of the lease
procedures designed to ensure compliance with external
Ancillary Activity Ruling
energy label from the lowest G rating to the highest A+
legislation and regulations. These form part of one of
Employees must ensure that their interests or business
rating. This is in line with GasTerra’s efforts to minimise its
GasTerra’s main CSR objectives – Gas 5 (see p. 47). The
activities do not conflict with the company’s interests in
burden on the environment as a result of its operations,
most important of these rules and procedures have been
compliance with the code of conduct.
i.e. one of its main CSR objectives – Green 3 (see p. 47).
This is also an objective that stakeholders appreciate as
listed below:
Anti-Bribery and Corruption Procedures
revealed during the stakeholder dialogue held in 2012
Competition Law Compliance
The basic principles for giving and receiving gifts have
(see p. 45). The building has also been laid out for new-
The code of conduct explicitly states that employees
been incorporated into the code of conduct. These
style working, i.e. no separate work areas, but an open
adhere to Dutch and European rules of conduct. These
principles have been defined in greater detail in several
office, where colleagues can communicate with one
were elaborated upon for GasTerra’s purposes in 2009 as
additional rulings that are intended to serve as guidelines
another in an optimal fashion and work flexibly in a less
part of its Competition Law Compliance Programme. A
for employees when deciding whether to give or receive a
location- and time-constricted fashion.
compliance officer was appointed who is responsible for
gift, what sort of gift this may be and what it may cost.
As part of the relocation, major strides were made in
implementing this programme. A component of this
2012 in terms of digitalisation. Departmental archives
programme involves a mandatory course that is held every
were first digitalised followed by personal archives.
Countless administrative processes have also been
Procurement of Goods and Services
digitalised. This resulted in reduced paper usage in 2012
Relocation to new premises also prompted expiring facility
of forty-one per cent with respect to 2011. GasTerra
management service contracts to be re-examined. As one
anticipates that usage will decrease still further in 2013.
of its bid criteria, GasTerra’s tender requested a statement
about how suppliers dealt with CSR-related issues.
Footprint Compensation
GasTerra also made agreements about the employment of
GasTerra anticipates that energy consumption in 2013
people with challenges finding suitable work, e.g. people
will decrease with respect to 2012 thanks to the energy-
with an occupational handicap or the long-term
efficiency of the new office premises. In the building on
unemployed.
the Rozenburglaan, GasTerra used 2,119 m³ of gas from
December 2011 up to and including November 2012.
Response
Electricity consumption in 2012 was 777 MWh. Last year,
If you should have any queries or comments in relation to
GasTerra compensated for its travel-related CO2 emissions
this annual report, then please contact GasTerra’s
with assistance from the Climate Neutral Group. In 2011,
Communications department. Contact details can be
compensation was made for approximately 110 tons of
found on p. 90.
CO2. GasTerra compensated for its CO2 emissions via the
Climate Neutral Group by financing a biogas project in
Cambodia. GasTerra also anticipates that car usage will
also decrease next year. The new premises – close to
Groningen Central Station and the limited number of
parking spaces at this location – should encourage
employees to make greater use of public transport and
bicycles.
67
Annual Accounts 2012
The 2012 annual accounts comprise the following:
Balance sheet as on December 31 (before profit appropriation)
68
Profit and loss account
69
Statement of cash flows
70
Explanatory notes to the annual accounts 71
68 | GasTerra annual
Jaarverslag
accounts
2012 2012
69
Balance sheet as on December 31(before profit appropriation)
Profit and loss account
in millions of Euros
Assets
note
20122011
Fixed assets
- tangible fixed assets
(1)
36.632.9
Current assets
note
Net turnover
(5)
Cost of sales
(6)
3,437.93,512.8
20122011
23,381.421,095.0
-/-23,366.4-/-20,991.0
15.0104.0
Gross profits
(2)
- receivables
Operating expenses
(7)
-/-63.6-/-60.0
259.2575.2
- cash and bank
3,733.74,120.9
Total
-/-48.644.0
Operating profit
Net financial income and expenses
(8)
96.64.0
Liabilities
Results on ordinary activities before tax
Shareholders’ equity
(3)
Current liabilities
(4)
216.0216.0
3,517.73,904.9
Total
3,733.74,120.9
Taxation
48.048.0
(9)
-/-12.0-/-12.0
Results after tax
36.036.0
Jaarverslag
accounts
2012 2012
71
Explanatory notes to the annual accounts
Cash flow from operating activities
20122011
1 Principles for valuation and determination of
results
Operating profit
-/-48.644.0
- depreciation and impairment losses
- movements in receivables
9.47.8
74.9
1,035.3
- movements in current liabilities
(excluding short-term financing)
-/-387.2-/-191.5
Cash flow from operations
Interest received
Interest paid & financing costs
Tax paid
-/-351.6895.6
98.0
11.9
-/-12.0
-/-12.0
exchange contracts.
The annual accounts have been drawn up in accordance
with the statutory provisions of Title 9, Book 2 of the
Cash and bank balances, trade receivables and current
Dutch Civil Code (BW). Unless otherwise stated, assets
liabilities in foreign currency are stated at the prevailing
and liabilities are recognised at nominal value. The
exchange rate as on the balance sheet date.
principles applied as the general basis for the valuation for
assets and liabilities and the determination of results, are
The exchange rate differences for gas exports and gas
the historical costs.
imports are recorded under gas sales and gas purchases
-/-1.4
-/-7.9
84.6-/-8.0
GasTerra B.V. (hereinafter referred to as GasTerra) limits its
foreign exchange risk by concluding short-term forward
General
Adjustments for
Foreign currencies
respectively. Other exchange rate differences are recorded
Comparative figures have been adjusted where required
under financial income and expenses.
to improve comparison.
Fixed assets
Cash flow from operating activities
-/-266.9887.6
Cash flow from investment activities
Investments in tangible fixed assets
-/-13.1
-/-11.3
Cash flow from investment activities
-/-13.1-/-11.3
Cash flow from financing activities
Movements in short-term financing
Dividends paid
0.0-/-270.0
-/-36.0-/-36.0
Cash flow from financing activities
-/-36.0-/-306.0
Estimates and uncertainties
Tangible fixed assets
In preparing these annual accounts, assessments,
Tangible fixed assets are valued at the historical purchase
estimates and assumptions were made that affect the
price or production cost, less straight-line depreciation
recorded amounts. These relate in particular to the net
over the economic life of the asset.
turnover and the costs of sales (including transport costs).
The assessments, estimates and assumptions that have
Tangible fixed assets that have not been completed as on
been made are based on market data, knowledge and
the balance sheet date are included under ‘Fixed assets
experience and other factors that are considered
under construction’. After the relevant asset has been
reasonable in the given circumstances. Any details relating
put into use, it will be classified under the main category
to estimates and evaluations are, if relevant, included in
‘Fixed assets’, that includes primarily software.
the explanatory notes to the balance sheet and the profit
Movements in cash and bank balance
-/-316.0570.3
and loss account below.
The depreciation periods applied are between five and ten
years.
Cash and bank at year-end
259.2575.2
Any impairment of assets that is expected to be
Cash and bank at preceding year-end
575.24.9
permanent is taken into account.
Movements in cash and bank balance
-/-316.0570.3
Jaarverslag
accounts
2012 2012
73
Current assets
Current liabilities
losses tied to the forward exchange contract or the gas
Net turnover
Receivables
The current liabilities are valued at the amortised cost,
price swap will be recorded in the profit and loss account
Net turnover is divided into gas sales and other net
The receivables are valued at the amortised cost taking
and involve liabilities with a term of no more than one
during the same period as that in which the active
turnover.
collectability risks into account. Trade receivable also
year. Amounts payable also include purchases that have
obligation or obligation entered into has an effect on the
include sales that have not yet been invoiced.
not yet been invoiced. Amounts received from, or to be
profit or loss.
charged to, clients due to a decreased purchase of gas
Gas sales represent the income from the supply of gas
and the income from the corresponding services provided,
Pensions
under ‘take-or-pay’ agreements are recorded under
GasTerra concludes gas purchase contracts and gas sale
after deducting the tax assessed on the turnover.
GasTerra has adopted a defined benefit pension scheme.
current liabilities as an obligation to deliver. The obligation
contracts as part of its business operations. These
Other net turnover is represented primarily by the income
The starting point is that pension charges to be processed
to deliver arising from the receipt of gas in the storage
contracts are concluded for the actual physical delivery
from the delivery of services to third parties. This income
in the reporting period are equal to the pension premiums
service is also recorded under current liabilities.
and receipt of gas in accordance with the company’s
results primarily from flexibility services.
expected purchases or sales levels, or usage requirements.
owed to the pension fund during the same period.
Derivative financial instruments (derivatives)
For this reason, these fall outside of the scope of RJ 290
The income is recorded during the reporting period in
A provision is also included as on the balance sheet date
The company uses derivative financial instruments within
(reporting standard).
which the gas was delivered and the services were
for existing additional obligations with respect to the fund
the course of its normal business activities. These are
and the employees if it is likely that an outflow of
forward exchange contracts for hedging the foreign
Gas sales and gas purchases
resources will be required in order to settle these
exchange risk of receivables and payables in foreign
The pricing of natural gas for both the sales and
A distinction is made between services related to making
obligations, and the scope of the obligations may be
currencies, and gas price swaps to hedge the price risk of
purchasing sides is influenced to a significant degree by
transport capacity and flexibility available and actual
reliably estimated. The presence or absence of additional
gas contracts with a fixed price.
the prices of other energy carriers, as well as by
usage. The services are considered to have been
developments in the spot market price for natural gas.
provided if they were made available to the client during
obligations is assessed based on the administration
provided.
agreement decided on with the fund, the pension
The company applies cost hedge accounting techniques
agreement concluded with the employees, and other
in order to incorporate the results from value adjustments
In addition, GasTerra’s shareholders have decided on an
commitments made to the employees. The provision
of the forward exchange contracts and the gas price
agreement that relates to the potential after-tax profits
Cost of sales
is valued at the best estimate of the cash value of the
swaps, simultaneously with the hedged receivable or
GasTerra can earn. This agreement stipulates that the
The cost of sales consist mainly of the cost of the
amounts that will be required to settle the obligations
payable, in the profit and loss account. Forward exchange
price of the natural gas from Groningen sold by the
purchase of gas and the associated services, the transport
on the balance sheet date. To the extent this obligation
contracts and gas price swaps are initially valued at cost.
Nederlandse Aardolie Maatschappij B.V. (NAM) to
costs and the costs related to underground gas storage.
relates to the upcoming financial year, this is recorded in
As long as the forward exchange contract or the gas price
GasTerra during the year has been set such that GasTerra
the current liabilities account.
swap relates to an expected future transaction, the
will retain the after-tax profits determined for that year by
forward exchange contract or the gas price swap will
the shareholders.
not be revalued. As soon as the hedged position of the
expected future transaction leads to the processing of a
financially active or a financial obligation, the profits or
the agreed time period.
Jaarverslag
accounts
2012 2012
75
2 Explanatory notes to the balance sheet
Operating expenses
The expenses are determined on a historical basis, taking
This report provides a statement of the cash flows
into account the principles for valuation mentioned
generated. The indirect method is used to determine
Tangible fixed assets (1)
previously, and are allocated to the reporting period to
the cash flow from operating activities, based on the
which they relate. Losses are recorded during the
operating results in the profit and loss account.
reporting period in which provisions for them may be
made.
In millions of Euros
Equipment
Assets under construction Net financial income and expenses
Total
Book value
Investments
Depreciation
Book value
as on 1 Jan. 2012 as on 31 Dec. 2012
26.6 11.79.4 28.9
6.3
1.4
-
7.6
32.9 13.19.4 36.6
This item includes the income and expenses related to
financing.
Purchase value
Cumulative depreciation
as on 31 Dec. 2012 as on 31 Dec. 2012
Corporation tax
Equipment
64.135.1
The amount of corporation tax to be included in the
Assets under construction
profit and loss account is calculated based on the results
Total
71.735.1
7.6 -
determined according to this account, in due observance
of the valid tax-related provisions and rates.
Current assets (2)
Receivables (in millions of Euros)
31 Dec. 2012
31 Dec. 2011
3,351.33,167.1
A provision is made for deferred taxes for temporary
Trade receivables
discrepancies between the book value of the assets and
Taxation -325.9
liabilities for financial reporting purposes and the tax base.
Other receivable amounts
86.619.8
A deferred tax asset will only be recorded to the extent
Total
3,437.93,512.8
in which it is likely that taxable profits will be available in
the future that may be applied towards the temporary
discrepancy.
None of the receivables have a term longer than one year.
Jaarverslag
accounts
2012 2012
77
Shareholders’ equity (3)
Unappropriated profit
Issued capital
The authorised and issued capital totals €180 million, and
Balance as on 1 January 2012
36.0
is divided into 40,000 shares, each of €4,500 nominal
Financial instruments
Interest rate risk
General
The interest rate risk is limited to potential changes in the
The company uses derivative financial instruments within
market value of funds withdrawn and issued. It is
the course of its normal business activities. These are
company policy not to use derivative financial instruments
value. The issued capital, that is paid in full, is divided as
Appropriation of the results for the 2011
forward exchange contracts for hedging the foreign
to manage fluctuations in interest rates (on an interim
follows:
financial year in accordance with the resolution
exchange risk of receivables and payables in foreign
basis or otherwise).
of the General Meeting of Shareholders
EBN B.V.
40%
Esso Nederland B.V.
25%
Shell Nederland B.V.
25%
Staat der Nederlanden
10%
-/- 36.0
currencies, and gas price swaps to hedge the price risk of
gas contracts with a fixed price.
Unappropriated profit for the 2012 financial year
Balance as on 31 December 2012
36.0
36.0
Liquidity risk
To limit its liquidity risk GasTerra has at its disposal a
The company does not trade in derivative financial
commercial paper programme of €1.0 billion and a
instruments.
committed credit line of €50 million at the end of 2012.
Credit risk
Foreign currency risk
Current liabilities (4)
The credit risk consists of the loss that would be
GasTerra’s policy is to fully hedge the currency risks that
31 Dec. 2012
31 Dec. 2011
generated if customers or other parties were to remain
arise from purchases and sales at the time the receivables
in default as of the reporting date and fail to fulfil their
or payables manifest themselves.
Amounts payable for gas purchases
1,798.8
Amounts payable to affiliated companies
1,004.7
2,817.6
871.7
Other trade amounts payables
15.1
14.3
Taxation and social security contributions
9.9
1.7
Other payables
688.6
Accrued and deferred income
0.5
199.1
0.5
Total
3,517.7
3,904.9
contract obligations. The company has drawn up
guidelines to which customers or other parties must
Market value
comply. These guidelines limit the risk associated with
The market value of the majority of the financial
possible credit concentrations and market risks. If
instruments recorded in the balance sheet, including
customers or other parties fail to comply with these
receivables, cash and bank and current liabilities, is
guidelines, they will be asked to furnish additional
approximate to the book value of those items.
security. This prevents the company from running any
major credit risks in respect of any individual customer or
The estimated market value and the total book value of
counterparty.
the forward exchange contracts and gas price swaps as
on 31 December are provided in the table on p. 78.
Jaarverslag
accounts
2012 2012
79
Estimated market
value 2012
BookEstimated market
value 2012
value 2011
Book
value 2011
Forward exchange contracts for selling pounds sterling
0.60.0
Forward exchange contracts for buying pounds sterling
1.0
Gas price swaps
0.60.0
-4.20.0
2.20.0
-11.90.0
0.0
3 Explanatory notes to the profit and loss account
-16.70.0
9.00.0
Net turnover (5)
2012
2011
23,262.7
20,978.7
Other net turnover
118.7
116.3
Total 23,381.4
21,095.0
Gas sales
By using cost price hedge accounting, as set out in the
The commitments and rights arising from long-term gas
principles, the book value of the derivative financial
purchase, sales and transport contracts are not shown on
The following is a regional analysis of gas sales.
instruments in the table above approaches zero.
the balance sheet.
2012
2011
The Netherlands
8,888.1
8,667.1
Commitments and rights not shown on the balance
Long-term gas purchase and sales agreements usually
Rest of Europe
14,374.6
12,311.6
sheet
contain renegotiation clauses enabling the parties to
Total
23,262.7
20,978.7
Procurement, supply and transport commitments
review the contract conditions during the term of the
GasTerra has long-term procurement, supply and
agreement, subject to certain conditions. GasTerra
The volumes decreased by 3.8% to 83.4 billion m³ as compared to 2011.
transport commitment pursuant to gas purchase, gas
regularly renegotiates the long-term gas sales and
The average selling price is 27.9 cents/m³ (24.2 cents/m³ in 2011).
sales and transport contracts. The gas purchase and sales
purchase contracts with the counterparties. It is not
prices depend to a large degree on the future market
possible to arrive at a reliable estimate of the outcomes of
Cost of sales (6)
prices of other energy carriers, as well as the future spot
these renegotiations.
2012
2011
Gas purchases
22,861.0
20,283.1
possible to arrive at a reliable estimate of the value of
Underground gas storage
Transport costs
505.4
707.9
these agreements.
GasTerra has long-term financial commitments with
Total 23,366.4
20,991.0
market prices of natural gas. For this reason, it is not
regard to underground gas storage capacity that are not
The long-term supply commitments are covered by long-
shown on the balance sheet, and that have average
The average purchase price is 26.9 cents/m³ (23.4 cents/
During the financial year, 48 billion m³ natural gas from
term purchase contracts. The financial risks that arise on
payment commitment of approximately €0.5 billion
m³ in 2011). The gas purchase costs also include the costs
Groningen was purchased from NAM.
balance from the long-term contracts are limited relative
(2011: €0.5 billion).
connected with underground gas storage.
to the size of the company.
Jaarverslag
accounts
2012 2012
81
Operating expenses (7)
Auditor’s fees
2012
2011
During the financial year, the following fees charged by KPMG Accountants N.V. were charged to the company, pursuant
Wages and salaries
16.6
16.0
to Section 2:382a of the Dutch Civil Code [BW]:
Social security charges
1.8
1.4
Pension expenses
6.1
3.9
Costs of work subcontracted and other outside expenses
32.5
34.5
Other operating expenses
6.6
4.2
Total
63.6
60.0
Net financial income and expenses (8)
20122012 20112011
Amounts in Euros
KPMGKPMG KPMGKPMG
Accountants N.V.
Other
203,10025,824
Other auditing work
11,000-
3,000-
2011
Tax advice
Interest income
98.0
11.9
Financial income
98.0
11.9
Accountants N.V.
205,63222,149
Other non-audit related services
2012
Other
Audit of the accounts
-154,800-211,015
---216,632176,949
206,100236,839
Remuneration of Directors and Supervisory Directors
remuneration policy as regards the company’s Supervisory
Directors is one of restraint.
Interest charges
-/-1.1
-/-7.2
The remuneration policy of GasTerra is aimed at
Financing costs
-/-0.3
-/-0.7
motivating and retaining Directors of the company who
Financial expenses
-/-1.4
-/-7.9
are capable of heading a large enterprise and
Directors of the company
remunerating them based on their performance. The
The remuneration for the executive director of the
Net position
96.6
4.0
company, Dr G.J. Lankhorst, is as follows:
Corporation tax (9)
Number of employees
2012
2011
The effective tax burden for 2012 was 25.0% (2011:
At the end of 2012, the number of personnel in full-time
Regular remuneration
€317,652
€305,474
25.0%).
equivalent positions was 189. The average number of
Bonus
€75,162
€74,271
employees in full-time equivalent positions during the
Employer’s contribution secondary employment conditions
€73,695
€65,066
The shareholders EBN B.V., Esso Nederland B.V. and Shell
The aforementioned bonus payments are based on
Supervisory of the company
Nederland B.V. are classified as affiliated companies of
achieving the agreed objectives during the year under
The total remuneration of the members of the Board of
GasTerra. Transactions between GasTerra and the
review. Under the Wet crisisheffing (‘crisis’ levy) €39.276
Supervisory Directors for the 2012 financial year was
affiliated companies are processed at prices that conform
is accounted for as an expense in the profit and loss
€58,084 (2011: €58,084).
to market levels.
account. GasTerra holds an insurance policy that offers
Affiliated companies
financial year was 191.
Directors and Supervisory Directors coverage in the event
of their liability.
Jaarverslag
accounts
2012 2012
83
Shareholder structure
Board of Management
in percentages, 2012
G.J. Lankhorst, Chief Executive Officer
Board of Supervisory Directors
C.W.M. Dessens, Chairman
J.C. De Groot
P. Dekker
M.E.P. Dierikx
J.M. Van Roost
She
ll N
ed
J.D. Bokhoven
.V.
dB
n
la
er
25
D.A. Benschop
State
10%
%
25
Ess
oN
%
ed
er
la
nd
B.V
.
EBN
40 %
Groningen, 14 February 2013
B.V.
84 | GasTerra Annual
Jaarverslag
report
2012
2012
85
Message from the Board of
Supervisory Directors
Meetings
arisen, confirming that 2012’s items for consideration had
At year-end 2012, the Audit Committee was made up of
Annual Accounts
The Board of Supervisory Directors – including the
been adequately addressed.
the following members:
Recommendations from the Board of Supervisory
College of Delegate Supervisory Directors – met on eleven
Attention was also paid to the various corporate social
J.C. De Groot, Chairperson
Directors to the AGM to be held in Groningen on
occasions in the presence of the Board of Management.
responsibilities relevant to GasTerra.
A.J. Boekelman
14 February 2013 are as follows:
I.J. Kalmijn
We have examined the 2012 Annual Accounts prepared
A.H. van der Linden
by the Chief Executive Officer in accordance with Article
No instances of frequent absenteeism were noted for any
member of the board. Members of the Audit Committee
Staffing Matters
were invited to attend one of these meetings.
The Board of Supervisory Directors discusses issues
23 of the Articles of Association. We concur with these
relating to management succession within the
Self-Evaluation
annual accounts and recommend that:
Decisions
organization with the Board of Management on an
The Board of Supervisory Directors discussed its own
a) the net profit for 2012 – set at €36 million – be
The Board of Supervisory Directors approved several of
annual basis.
performance in 2011. The next evaluation shall be held in
the Board of Management’s decisions in compliance with
In response to Mr Blacquière’s departure as Chief
2013.
b) the 2012 Annual Accounts be approved without
relevant provisions stipulated in the Articles of
Financial Officer, the Board of Supervisory Directors
The Audit Committee carried out a self-evaluation in
change.
Association. In several cases, the Board of Supervisory
established an ad hoc nomination committee consisting
2012. Items for consideration arising from this self-
Directors amended the decisions, i.e. it withheld its
of two members of the Board of Supervisory Directors
evaluation relate to the committee’s Terms of Reference,
The Board of Supervisory Directors wishes to express
approval.
and the Chief Executive Officer. This committee was
cooperation of the Board of Supervisory Directors, its
its appreciation for the results achieved in 2012 and its
unanimous about the appointment of a new Chief
internal auditing role, risk management, external auditing
gratitude for the way in which the Board of Management
Financial Officer.
procedures, tax-related affairs and committee meeting
and staff have acquitted themselves of their tasks this past
workings. The next self-evaluation shall be held in 2014.
financial year and for the results that they achieved. The
Strategy and Objectives
The company’s strategy and its implementation as a set
of objectives for the years ahead were discussed with
Audit Committee
the Board of Management. The extent to which 2011’s
The Board of Supervisory Directors has one standing com-
Company Visits and Workshops
objectives had been achieved was also discussed.
mittee, the Audit Committee, that oversees the workings
A delegation from the Board of Supervisory Directors
reserved for payment to the shareholders;
Board wishes everyone working at GasTerra all the best in
their endeavours to achieve the objectives set for 2013.
of internal risk management and control systems, all
participated in an Energy Transition Model workshop.
Risk Management
financial affairs, relations with the external accountant
Board of Management meetings with the staff council
In 2012, the Board of Supervisory Directors discussed the
and ICT implementation. The Audit Committee held
were attended by members of the Board of Supervisory
C.W.M. Dessens, Chairperson
company’s strategy and risks, as well as the outcome of
itself accountable to the Board of Supervisory Directors
Directors on two occasions in 2012.
D.A. Benschop
management’s assessment of the internal risk
concerning the activities it had undertaken at one of the
management and control system’s setup and operation –
Board of Supervisory Directors’s meetings.
the Document of Representation.
Attention was also paid to the management letter from
The Audit Committee met on four occasions during the
the external accountant in which it was noted with much
reporting year in question.
satisfaction that no new items for consideration had
Board of Supervisory Directors, 14 February, 2013
J.D. Bokhoven
Personal Details
J.C. De Groot
The composition of the Board of Supervisory Directors
P. Dekker
remained unchanged in 2012.
M.E.P. Dierikx
J.M. Van Roost
Jaarverslag
report
2012
2012
87
Other information
Independent auditor’s report
Auditor’s responsibility
Opinion
Our responsibility is to express an opinion on these
In our opinion, the company financial statements give
company financial statements based on our audit. We
a true and fair view of the financial position of GasTerra
conducted our audit in accordance with Dutch law,
B.V. as at 31 December 2012 and of its result for the year
Report on the company financial statements
including the Dutch Standards on Auditing. This requires
then ended in accordance with Part 9 of Book 2 of the
We have audited the accompanying company financial
that we comply with ethical requirements and plan and
Netherlands Civil Code.
statements 2012 of GasTerra B.V., Groningen, which
perform the audit to obtain reasonable assurance about
comprise the company balance sheet as at 31 December
whether the company financial statements are free from
Report on other legal and regulatory requirements
2012, the company profit and loss account for the year
material misstatement.
Pursuant to the legal requirements under Section 2:393
then ended and the notes, comprising a summary of the
An audit involves performing procedures to obtain audit
sub 5 at e and f of the Netherlands Civil Code, we have
accounting policies and other explanatory information.
evidence about the amounts and disclosures in the
no deficiencies to report as a result of our examination
company financial statements. The procedures selected
whether the annual report, to the extent we can assess,
Management’s responsibility
depend on the auditor’s judgment, including the
has been prepared in accordance with Part 9 of Book 2 of
Management is responsible for the preparation and fair
assessment of the risks of material misstatement of the
this Code, and whether the information as required under
presentation of these company financial statements and
company financial statements, whether due to fraud or
Section 2:392 sub 1 at b - h has been annexed. Further,
for the preparation of the annual report, both in
error. In making those risk assessments, the auditor
we report that the annual report, to the extent we can
accordance with Part 9 of Book 2 of the Netherlands Civil
considers internal control relevant to the company’s
assess, is consistent with the company financial
Code. Furthermore, management is responsible for such
preparation and fair presentation of the company
statements as required by Section 2:391 sub 4 of the
internal control as it determines is necessary to enable the
financial statements in order to design audit procedures
Netherlands Civil Code.
preparation of the company financial statements that are
that are appropriate in the circumstances, but not for the
free from material misstatement, whether due to fraud or
purpose of expressing an opinion on the effectiveness
error.
of the company’s internal control. An audit also includes
To: the Board of Directors of GasTerra B.V.
evaluating the appropriateness of accounting policies
KPMG Accountants N.V.
used and the reasonableness of accounting estimates
J. F. G. Morsink RA
made by management, as well as evaluating the overall
presentation of the company financial statements.
We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit
opinion.
Jaarverslag
report
2012
2012
89
Independent assurance report
To the readers of the Annual Report 2012
of GasTerra B.V.
Work undertaken
G3.1 Guidelines of the Global Reporting Initiative.
entirely. We have also reviewed, to the extent of our
Our work included the following activities:
We have also reviewed, to the extent of our competence,
competence, whether the information on sustainability in
• A media analysis and internet search on
whether the information on sustainability in the other
position of GasTerra the reader should read The Report
the other parts of The Report is consistent with the
environmental, safety and social issues for GasTerra, in
parts of The Report is consistent with the information
information preceding with the icons order to deepen our insight in relevant sustainability
preceding with the icons
and
.
Introduction
and
.
issues and topics in the reporting period.
• Interviews with members of the CSR Steering
The management of GasTerra B.V. (hereafter: ‘GasTerra’)
Reporting criteria
engaged us to provide assurance on the CSR information
GasTerra applies the Sustainability Reporting Guidelines
Committee responsible for the implementation of the
in the GasTerra Annual Report 2012 (hereafter: ‘The
(G3.1) of the Global Reporting Initiative (GRI) for
CSR strategy and other staff at corporate level
port, we draw the readers’ attention to the following:
Report’). For this purpose we reviewed the information
sustainability information in The Report.
responsible for providing the information in The
• in the past year GasTerra formulated its main goals
and
and for the
Observations
Without affecting the conclusions of our assurance re-
for the CSR policy and translated these into sub-goals.
Report.
• A review of internal and external documentation,
remaining information in The Report we checked whether
Assurance standard
that information is consistent with the information in
We carried out our engagement in accordance with
based on sampling, to determine whether the
KPIs based on the main goals and to provide insight in
these chapters. The management of GasTerra is
Standard 3410N ‘Assurance engagements relating to
information in the Report is supported by sufficient
the next Annual Report in the realization of the main
responsible for preparing The Report, including the
sustainability reports’ of The Netherlands Institute of
evidence;
goals based on these KPIs.
identification of material issues. Our responsibility is to
Chartered Accountants. This Standard requires, amongst
issue an independent assurance report on the indicated
others, that the assurance team possesses the specific
information in The Report with the information in the
parts in The Report.
knowledge, skills and professional competencies needed
information preceding with the icons
We recommend GasTerra to develop medium term
• Assessing the consistency of the remaining
and
.
to understand the information, identify and collect the
KPMG Sustainability
Context and scope
required assurance information, and that they comply
During the assurance process we discussed necessary
Our engagement was designed to provide the readers of
with the requirements of the IFAC Code of Ethics for
changes in The Report with GasTerra and reviewed the
The Report with limited assurance on whether the
Professional Accountants, including independence.
final version of The Report to ensure that it reflects our
information in the information preceding with the icons
and
findings.
, in all material respects, is fairly presented.
We do not provide any assurance on the achievability of
Conclusion
the targets, expectations and ambitions of GasTerra.
Based on our work as described above nothing has come
Procedures performed to obtain a limited level of
to our attention to indicate that the information in Report
assurance are aimed at determining the plausibility of
information and are less extensive than those for a
presented, in all material respects, in accordance with the
reasonable level of assurance. To obtain a thorough
understanding of the financial results and financial
and
is not fairly
part of KPMG Advisory N.V.
Drs. W.J. Bartels RA, Partner
91
GasTerra B.V.
Colophon
Postal address
Publishes by
P.O. Box 477
GasTerra B.V.
9700 AL Groningen
The Netherlands
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studio Tineke Wieringa,
Visitor’s address
Haren
Stationsweg 1
9726 AC Groningen
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and others
Production
Lecturis, Eindhoven (printing)
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Appendix 1
Background information on directors and
members of the Board of Supervisory Directors
GasTerra’s Directors
Under its articles of association, GasTerra is managed by a Chief Executive Officer (CEO), and three other directors with specific
areas of responsibility. They are appointed for an indefinite term. The general directors are general holders of a power of attorney;
they fulfil their duties under the responsibility of the CEO.
The GasTerra Board of Directors is composed of the following members:
Gertjan Lankhorst
Chief Executive Officer
Gertjan Lankhorst was born in Amsterdam on 22 December 1957. He worked at the Vrije Universiteit in Amsterdam from 1982 to
1986. In 1986, he took up a position at the Ministry of Economic Affairs as a member of the General Economic Policy Department.
This was followed by various other positions at the Ministry including Director of Oil and Gas (1996-1999), Director of Competition
(1999-2003), and Director-General of Energy (2004-2005).
On 1 September 2006, he was appointed Chief Executive Officer of GasTerra.
Education
Vrije Universiteit Amsterdam, General Economics (graduated in 1984)
Authority
Director, independently authorised
Maurice de Wilde, RC
Chief Financial Officer – effective 15 January 2013
Maurice de Wilde was born in ’s-Hertogenbosch on 20 September 1971. He started working for Shell in 2000, where he fulfilled
several positions. Amongst other positions, Maurice de Wilde worked as Finance Manager in Oman and as Asset Finance Manager
for the Nederlandse Aardolie Maatschappij (NAM). In his last position, he worked as a financial director in Gabon starting in 2009,
where his responsibilities included finance, IT and procurement. Prior to working for Shell, he worked at PriceWaterhouseCoopers
and Lyondell Chemical.
Education
Erasmus University Rotterdam, Business Economics (graduated in 1995) and Register Controller (graduated in 1999)
Authority
General holder of a power of attorney
1 | GasTerra annual report 2012 | Background information on directors and members of the Board of Supervisory Directors
Jacob Kielman
Chief Commercial Officer
Jacob Kielman was born in Winschoten on 30 December 1951. From 1973 to 1974, he worked at the Cartonfabriek Union in Oude
Pekela as an executive assistant. From 1977 to 1981, he was a staff lecturer at the Stichting Opleiding Sociale Arbeid (social work
training institute), for upper secondary and higher professional educational programmes. He then took a management consultancy
position at the PTT, covering the Groningen telephone district.
In 1983, Jacob Kielman was hired by Gasunie, where he started out as a Capital Markets staff assistant in the Treasury section, and
later became the head of the Capital Markets, Foreign Currency and Money Market department. In 1989, he was appointed project
manager for Gas Purchases. From 1990 to 1996, he was Head of Gas Sales to Industry, and then head of Treasury and Economics.
On 15 February 2000, he was named Director of Gas Purchases. He later became director of Long-term Futures Markets at
GasTerra. He has been Chief Commercial Officer since 2010.
Education
University of Groningen, Business Economics (graduated in 1977)
Authority
Anton Broenink
Chief Operating Officer
Anton Broenink was born in Hengelo on 26 May 1957. In May 1981, he joined Esso Nederland B.V. (ExxonMobil), where he held
a variety of positions in the Netherlands and abroad. From 1981 to 1983, he worked as an engineer in the Logistics Department
of Esso Benelux, and then at the Esso refinery in Rotterdam. He then worked from 1984 to 1986 as a senior engineer at Exxon
Research and Development, and at Esso’s Flexicoking Unit in Rotterdam. During the period from 1986 to 2002, he held a vast range
of positions, ranging from Supply Operations Manager to European Optimisation Advisor, as well as managing several projects. In
2002, he was appointed as Gas Marketing Manager in the ExxonMobil Gas Marketing department.
On 1 June 2007, Anton Broenink joined GasTerra as a member of the management team.
Education
University of Twente Enschede, Chemical Engineering (graduated in 1981)
Authority
GasTerra’s Directors
Name
Title/PositionAuthority
Date of appointment
Gertjan Lankhorst
Chief Executive Officer
1 September 2006
Independently authorised
Maurice de Wilde, RC
Chief Financial Officer
15 January 2013
Jacob Kielman
Chief Commercial Officer
1 July 2005
Anton Broenink
Chief Operating Officer
1 October 2007
Composition of the GasTerra Board of Supervisory Directors
The Board of Supervisory Directors supervises the policy of the Board of Directors and the general day-to-day operations at GasTerra. The Board of Supervisory Directors consists of eight members, one of whom is appointed by the Minister of Economic Affairs,
Agriculture and Innovation. The Board elects a chairman from among its number, and this appointment must be approved by the
Minister of Economic Affairs.
The Board of Supervisory Directors appoints from among its number a College of Delegate Supervisory Directors consisting of five
members, one of whom is a supervisory director appointed by the Minister of Economic Affairs, Agriculture and Innovation. The
Board may delegate its authorities to the College of Delegate Supervisory Directors, to the extent this delegation does not violate
the duties and authorities of the Board of Supervisory Directors.
It has been laid down in the articles of association that two members of the Board of Supervisory Directors will step down each year
during the General Meeting of Shareholders, according to a rotation schedule to be determined by the drawing of lots. The board
members stepping down will be immediately eligible for re-election or reappointment. Successive members of the Board of Supervisory Directors take the places of their predecessors on the rotation schedule.
GasTerra’s Board of Supervisory Directors
NameAuthority
Date of appointment
C.W.M. Dessens
1 January 2006Eligible for reappointment in 2013
Delegate member
Term of office
D.A. Benschop
Delegate member
1 May 2011Eligible for reappointment in 2012
J.D. Bokhoven
Delegate member
1 November 2007Eligible for reappointment in 2015
P. Dekker
Member of the Board of Supervisory Directors
1 July 2005Eligible for reappointment in 2013
M.E.P. Dierikx
Delegate member
J.C. De Groot
Member of the Board of Supervisory Directors
1 January 2006Eligible for reappointment in 2012
J.M. Van Roost
Delegate member
A.P.N. van Veldhoven Member of the Board of Supervisory Directors
31 March 2011Eligible for reappointment in 2015
C.W.M. Dessens
Stan Dessens was born in Vlaardingen on 30 October 1947. He is the chairman of the Board of Supervisory Directors and the
College of Delegate Supervisory Directors. In 1974, he started working at the Ministry of Economic Affairs, at the DirectorateGeneral for Industry and for Energy. From 1988 to 1999, he was the Director-General for Energy. In 1999, he was appointed as
Director-General for Law Enforcement at the Ministry of Justice. He has been self-employed since 2005.
Mr Dessens has held various board positions, including chairman of the Stichting Aanpak Voertuigcriminaliteit (AVc) [anti-vehicle
crime foundation], board member of the Stichting Meld Misdaad Anoniem [foundation for reporting crime anonymously], and
chairman of the Executive Board of the CATO [CO2 Capture, Transport and Storage] project..
Education
University of Leiden, Physics (graduated in 1972) and Law (graduated in 1974)
D.A. Benschop
Dick Benschop was born on 5 November 1957 in Driebergen. He is a Delegated Supervisory Director of GasTerra. He has held
various positions in the Dutch Lower House and the PvdA [Labour Party]. In 1994, he set up his own consulting firm. Between 1998
and 2002, he returned to politics as State Secretary of Foreign Affairs during the second term of Wim Kok’s cabinet.
In 2003, he took a position at Shell in the European gas company, Shell Energy Europe. In early 2006, he moved to Kuala Lumpur to
head the Gas & Power business (LNG and GTL) in Malaysia. In 2009, he became Vice President of Strategy for the Royal Dutch Shell
Group. On 1 May 2011, he became President-Director of Shell Nederland, and Vice-President of Global Gas Market Development.
Education
Vrije Universiteit Amsterdam, History (graduated in 1984)
J.D. Bokhoven
Jan Dirk Bokhoven was born on 4 March 1957 in Rotterdam. He is a Delegated Supervisory Director of GasTerra. From 1982
through 2001, he held various positions for Conoco, Veba, Clyde and other organisations. In 2001, he joined EBN as Technical
Manager. Since 2007, he has been Chairman of the Board at EBN and as such, has final responsibility for all of EBN’s activities.
Education
Delft University of Technology, Petroleum Production (graduated in 1983)
P. Dekker
Pieter Dekker was born in Wassenaar on 16 July 1950. He is a member of GasTerra’s Board of Supervisory Directors. Since 1977,
he had held various positions within Shell’s natural gas organisation, including posts in London and Calgary. In 1997, he returned
to the Netherlands and was responsible for Shell’s participation in the Nederlandse Gasgebouw [Dutch gas sector], with a specific
focus on the natural gas sales activities. He is also a member of the Board of Supervisory Directors of the Nederlandse Aardolie
Maatschappij (NAM) and responsible for Shell’s participation in a gas company in Greece, and the wind energy project NoordzeeWind in the Netherlands.
Education
Delft University of Technology, Applied Physics (graduated in 1975)
M.E.P. Dierikx
Mark Dierikx was born on 5 June 1953 in Vlissingen. He is a Delegated Supervisory Director of GasTerra. After completing his
studies, he spent several years working in marketing at Esso Chemicals.
After that, he chose a career at the Ministry of Economic Affairs. While there, he was originally active in the field of Dutch industry
and technology policy, and from 1992, in Foreign Economic Relations, and from 1994, as Director of Economic Cooperation and
Export Policy. In 1996, he made the transition to the Ministry of Foreign Affairs as the Director for Asia and Oceania, and was also
appointed Deputy Director of Regional and Country Policy. In 2000, he once againreturned to the Ministry of Economic Affairs as
exempt Deputy Director-General of Foreign Economic Relations. In 2004, Mr Dierikx joined the Ministry of Transport and Public
Works as Director- General for Water. From 1 January 2008 to 1 July 2011, he was Director-General of Aviation and Maritime
Affairs. On 1 July 2011, Mr Dierikx was appointed Director-General for Energy, Telecom and Competition at the Ministry of
Economic Affairs.
Education
Vrije Universiteit Amsterdam, Organic Chemistry, with biochemistry and economics as subsidiary subjects (graduated in 1979)
J.C. De Groot
Jos de Groot was born on 22 May 1958 in Groningen. He is a member of GasTerra’s Board of Supervisory Directors. After
graduating, he held various positions within the Ministry of Finance. In 2002, he moved to the Ministry of Economic Affairs, where
he became Director for Energy Production. Since 2006, he has been Director for the Energy Market and is responsible for market
operations and security of supply within the energy sector.
Education
State University of Groningen, General Economics (graduated in 1982)
J.M. Van Roost
Joost Van Roost was born on 13 April 1955 in Louvain (Belgium). He is a Delegated Supervisory Director of GasTerra. Starting in
1979, he held various positions within the ExxonMobil organisation. In 1999, he was appointed Upstream Director at ExxonMobil
Benelux. After the merger between Exxon and Mobil, he became president of ExxonMobil Benelux in 2000. He is also the Director
of Natural Gas and CEO of Esso Nederland BV, and CEO of ExxonMobil Petroleum & Chemicals BVBA.
Education
Catholic University in Louvain, Electromechanical Engineering (1977), University of Michigan, MSc in Nuclear Engineering (1978),
MBA (1983)
Alexander van Veldhoven was born on 29 November 1973 in Waalwijk. He is a member of GasTerra’s Board of Supervisory
Directors. Since 1999, he has held various positions at ExxonMobil, including posts in London, Hannover and Houston. In his
current position as Gas Marketing Manager, he represents ExxonMobil in the Dutch gas sector.
Education
University of Maastricht, Business Economics (graduated in 1999)
Appendix 2
Ancillary positions held by GasTerra directors
and supervisors
Board of Directors
NameTitle/Position
G.J. Lankhorst
Chairman, Board of Supervisory Directors of the Hanzehogeschool
Member, judges’ panel for the Ien Dales (Integrity) Award
Member, Advisory Council for the Clingendael International Energy Programme
Board member, Energie-Nederland
Board member, the Energy Delta Institute
Member, Board of Supervisory Directors of Energy Valley
Vice-President, Eurogas
Board Member, the Industrial Round Table EU-Russia
Co-chairman, Energy Working Group and co-chairman, Project Delta of the Joint
Netherlands-Russia Business Dialogue
Board member, Stichting Culturele Relatie Evenementen Gasunie/GasTerra
Member, National Committee of the World Petroleum Council
Member, Board of Supervisory Directors of Marketing Groningen
Board member, Groningen Trade Association
Chairman, Royal Dutch Gas Association
Member, Strategic Advisory Council of TNO Construction and Substrate Engineering
Member, Executive Committee of the International Gas Union
Member, Programme Board for Gas Regional Initiative, Northwest Region
Member, Steering Group of Energy Academy Europe
J.E. Kielman
Chairman, Board of Supervisory Directors of the Groningen Film Company
Chairman, Departement Groningen van de Maatschappij (Groningen Common Good Fund)
Chairman, Investment Committee of the Stichting Oude Groninger Kerken (Church
Preservation Society)
Chairman, Board of Supervisory Directors of the SWZ Housing Corporation
B.A. Westmaas
Board member, Noorderlink
Board member, Connect International
J.R.L.W. Stäbler
Member, Advisory Council of the Hanzehogeschool International Business Studies programme
A.J.P. Buijs
Member, Work Field Advisory Committee for the Hanzehogeschool Institute for
Communication & Media
Chairman, External Communications Committee of Eurogas
A.E.M. BroeninkSecretary, TKI Gas
Treasurer, Stichting Het Houten Huis
1 | GasTerra annual report 2012 | Ancillary positions held by GasTerra directors and supervisors
Appendix 2
Ancillary positions held by GasTerra directors
and supervisors
Supervisors
NameTitle/Position
Stan Dessens
Chairman, Stichting Aanpak Voertuigcriminaliteit (AVc) (Anti-Vehicle Crime Foundation)
Chairman, Bicycle Theft Steering Group
Board member, Stichting Meld Misdaad Anoniem (Foundation for Reporting Crime
Anonymously)
Chairman, Executive Board of CATO (CO2 Capture, Transport and Storage)
Chairman, Commission on Additional Innovative Projects (Borssele Covenant)
Member, Board of Supervisory Directors of the National Air and Space Laboratory (NLR)
Board member, Stichting Beveiligd Wonen (Home Security Foundation)
Chairman, Vereniging tot behoud van Oud, Groen en Leefbaar Voorschoten
(Cultural/Environmental Preservation Society)
Board member, Stichting tot Behoud van Cultuurhistorische Buitenplaatsen
(Cultural-Historic Outdoor Preservation Society)
Dick BenschopPresident-Director, Shell Nederland B.V.
Member, VNO-NCW Executive Board
Member, VNCI Executive Board
Chairman, VNPI Board
Chairman, Dutch Board of the World Petroleum Conference
Chairman, Stichting Christiaan Huygensprijs
Board member, Avond van Wetenschap en Maatschappij (Evening for Science and Society)
Board member, Apeldoorn British-Dutch Dialogue Conference
Board member, ICC Netherlands
Chairman, Board of Supervisory Directors of The Hague Institute of Global Justice
Member, Board of Supervisory Directors of the Veer Stichting
Member, Economic Development Board Rotterdam
Member, NCDO Board of Supervisors
Member, Advisory Council for the Clingendael International Energy Programme (CIEP)
Member, Trilateral Commission
Jan Dirk Bokhoven
Chief Executive Officer, EBN B.V.
Member, Strategic Advisory Council for Energy TNO
Pieter Dekker
Vice President, Joint Venture Governance, Upstream International Europe, Shell
Member, Supervisory Board Nederlandse Aardolie Maatschappij B.V. (NAM)
Member, Supervisory Board NoordzeeWind B.V.
NameTitle/Position
Mark Dierikx
Director-General for Energy, Telecom and Competition, Ministry of Economic Affairs
Member, Energy Top Team
Jos De Groot
Director for the Energy Market, Ministry of Economic Affairs
Chairman, Stichting Vrije Academie voor Beeldende Kunsten in The Hague
Joost Van RoostPresident-Director, Esso Nederland B.V.
Chairman, ExxonMobil Petroleum & Chemical, bvba
Member, Board of Supervisory Directors Nederlandse Aardolie Maatschappij B.V. (NAM)
Director, American Chamber of Commerce in Belgium
Director, American Chamber of Commerce in the Netherlands
Trustee, United Fund of Belgium
Alexander van Veldhoven
Gas Marketing Manager, Esso Nederland B.V.
Supporting Technical Data for Theme Pages
GasTerra Annual Report 2012
Gas
Gas
Volume (billion m3)83
Lower Heating Value (LHV) (MJ/m³)
31.65
Higher Heating Value (HHV) (MJ/m³)
35.17
Energy Content (LHV) (MJ)
2.6 x 1012
Energy Content (LHV) (kWh)
7.3 x 1011
Energy Content (HHV) (MJ)
2.9 x 1012
Energy Content (HHV) (kWh)
8.1 x 1011
Gas-Fired Power Station (CCGT)
Efficiency (%)
50%
Electricity Generated (kWh)
kcal
3.6 x 1011
kcal MJkWh
1
0.00418680.001163
MJ
238.8 10.2778
kWh
859.83.6
1
The energy contained in natural gas is compared to that in various
other energy sources. The full energy content of gas is relevant when
comparing it with solar power, biomass and human work. This is why
the higher heating value (HHV) has been used in these calculations.
Gas can of course also be used in power stations to generate electricity.
Output can then be compared to that of solar panels and wind
turbines. In such cases, the energy content of gas is not being fully
utilized and the lower heating value (LHV) has therefore been used in
calculations. The same applies when gas is used as a vehicle fuel.
Solar irradiation
Natural Gas
83 billion m3
Solar Power
17 seconds
Global Average
(83 billion m3) supplied by
GasTerra, when expressed in
terms of solar energy?
83 billion m3 of natural gas
of solar energy reaching
Earth in 17 seconds.
Irradiance (W/m2)340
Surface Area (Earth) (km2)
510 million
Energy (per second) (MJ)
173 x 109
Energy (per 17 seconds) (MJ)
2.9 x 1012
Dutch Average
17 seconds of sunlight
3
In 17 seconds
Irradiance (W/m2)100
Surface Area (NL) (km2)41,528
Energy (per second) (MJ)
4.2 x 106
Energy (in 8.1 days) (MJ)
2.9 x 1012
290.000 km2 of coniferous forest
3
Natural Gas
83 billion m3
Coniferous
Forest
290.000 km2
GasTerra when expressed in terms
of the energy stored in forests?
Biomass
Wood
SG (ton/m3)700
Lower Heating Value (LHV), dry matter (MJ/kg)
19.5
Non-Renewable Forest
of energy stored in
sustainably managed
coniferous forest covering
an area comparable to 80%
of the size of Germany.
Wood Density (NL) (m3/ha)200
Wood Density (NL) (kg/m2)14
Non-Renewable Energy Output (dry matter) (MJ/m2)273
Renewable Forestry
Annual Renewal (m3/ha)7.5
Annual Renewal (kg/m2)0.5
Annual Energy Output (dry matter) (MJ/m2)10.2
Annual Energy Output (290.000 km2) (MJ)
2.9 x 1012
Sources
www.probos.net/bosdigitaal/html/doc_houtproductie.html
www.avih.nl/pdf/Ecofys-biomassapotentieel.pdf
Road Transport
Natural Gas
83 billion m3
Road
Vehicles (NL)
6-year
fuel supply
terms of vehicle fuel?
Passenger/Goods Vehicles
Fuel Consumption (× 106 L/year)
Approximately 14 billion litres
of fuel is used in
the Netherlands annually
Lower Heating Value (LHV), Average [MJ/L]
Energy Content (MJ)
Energy Content (6-year fuel supply) (MJ)
is the same as that of the
fuel required to keep all
road vehicles in the
Netherlands running.
83 billion m3
of natural gas =
6-year supply of fuel
for all road vehicles
in the Netherlands
14,000
33.00
0.46 x 1012
2.6 x 1012
Human Consumption
Natural Gas
83 billion m3
Food
1 billion people
GasTerra when expressed in terms
of food?
food for 1 billion people
Consumption
Consumption (kcal/day)
2000
Annual Consumption (per person) (MJ)
3056
Annual Consumption (1 billion people) (MJ)
of energy consumed in the
form of food and drink by
one billion people.
Total
World Population
One billion
people
2.9 x 1012
Human Labour
Natural Gas
83 billion m3
Work
2.2 billion people
Home Trainer
terms of human work?
Power Output (W)
Cycling Duration (per day) (h)
10
Annual Energy Output (kWh)
365
Energy Output (2.2 billion people) (kWh)
2.2 billion people cycling
non-stop for the duration
of one year.
Approximately 2.2 billion people
cycle non-stop for one year
work output of 2.2 billion people
100
7.3 x 1011
Wind Turbines
Natural Gas
83 billion m3
Wind Turbines
24.000 turbines
Offshore Wind Turbines
terms of wind power?
Power Output (MW)
Load Factor (%)
Annual Output (MWh)
Output (24,000 wind turbines) (MWh)
when converted to
electricity is the same as the
amount of energy generated
by 24,000 5-MW wind
turbines.
24,000 offshore
wind turbines
24,000 wind turbines
5
35%
15,000
3.6 x 1011
Solar Panels
Natural Gas
83 billion m3
Solar panels
3100 m2
Solar Panels
terms of solar panels?
Power Output (kW)
Efficiency (%)
1
14%
Surface Area (m2)7.14
83 billion m³ of natural gas,
when converted to electricity,
is the same as the amount of
energy generated by 3100
km² of solar panels.
Annual Output (NL) (kWh)
850
Surface Area Output (NL) (kWh/m²)
119
Output (3,100 km² of solar panels) (kWh)
This is an area approximately
comparable to the size of the
Province of South Holland.
3100 km2 of solar panels
3.6 x 1011
Appendix 4
Governance
GasTerra BV is a private limited company with registered offices in Groningen, the Netherlands. The company was founded on
1 July 2005 when NV Nederlandse Gasunie was split into a transmission system operator (TSO) and a trading company. In doing so,
all the infrastructure (gas mains network) and all transmission-related activities remained at Gasunie, while all gas trading activities
were continued within the newly formed GasTerra.
GasTerra BV’s authorised share capital is €180 million split into forty thousand shares each valued at €4,500. All shares have been
subscribed, fully paid and registered, and can only be transferred by unanimous approval of the AGM. Shares are held by the state
(10%), EBN BV (40%), Shell Nederland B.V. (25%) and Esso Nederland B.V. (25%). Consequently, fifty per cent of shares are indirectly
publicly owned, i.e. state-owned, and fifty per cent are private-sector owned, i.e. two multi-national petroleum companies. This
form of public-private partnership (PPP) has been a major feature of the Dutch gas industry since 1963 when N.V. Nederlandse Gasunie was founded and the Groningen concession was awarded to NAM (Nederlandse Aardolie Maatschappij).
As is common practice, the AGM appoints the company’s board of directors. In GasTerra’s case, under its articles of association, the
board is formed by one person, the chief director or Chief Executive Officer (CEO). The CEO is appointed following a nomination by
the Board of Supervisory Directors. This nomination has to be approved by the Minister of Economic Affairs.
In addition to a CEO, GasTerra’s board of directors consists of several directors/general holders of a power of attorney who are
appointed following approval by the AGM. These include a Chief Financial Officer (CFO), a Commercial Director and a Director of
Strategy & Optimisation. CEO and directors’ salaries and other benefits are set by the Board of Supervisory Directors.
Only the CEO is independently authorised to represent the company. Two general holders of a power of attorney are jointly
authorised to legally represent the company.
GasTerra’s board of directors meets weekly or more frequently, if so required. In addition to the CEO and the general holders of a
power of attorney, managers of the Legal Affairs, Communications & Public Affairs, P&O and IT departments attend board
meetings.
The Board of Supervisory Directors monitors the board of directors’ activities. Since 2007, this Board has comprised eight members,
one of whom is directly appointed by the Minister of Economic Affairs.
The articles of association determine that important GasTerra decisions be approved by the Board of Supervisory Directors or the
College of Delegate Supervisory Directors. This College of Delegate Supervisory Directors is a statutory company body. The College
is formed by members of the Board of Supervisory Directors and consists of five supervisory directors including the member
appointed by the Minister of Economic Affairs, Agriculture and Innovation.
The College of Delegate Supervisory Directors supervises policy-making and GasTerra’s general affairs, and assists the board of
directors in a close advisory capacity.
Appendix 5
GRI Table for publication in sustainability report
ProfileDescription
Reported
PageReason for Omission/Partial
(fully/partially/omitted)Reporting
Strategy and Analysis
1.1
Statement from the most senior decision-maker of the
Fully
Annual Report: CEO’s Message, p. 7-9
Fully
Annual Report: CEO’s Message, p. 7-9
organisation, e.g. chairman of the board, director, etc.,
relating to relevance of sustainable development to the
organisation and its strategy.
1.2
Description of key impact, risks and opportunities.
Annual Report: Market Trends, p. 23,24
Annual Report: Risk Management, p. 41-43
Annual Report: Corporate Social Responsibility, p. 43,44
Organisational Profile
2.1
Name of the organisation.
Fully
Annual Report: Mission, Vision and Strategy, p. 2
2.2
Primary brands, products and/or services.
Fully
Annual Report: Mission, Vision and Strategy, p. 2,3
2.3
Operational structure of the organisation, including
Fully
Annual Report: Management Information, p. 10-13
main divisions, operating companies, subsidiaries and
joint ventures.
2.4
Location of organisation’s headquarters.
Fully
Annual Report: Mission, Vision and Strategy, p. 2
2.5
Number of countries where the organisation operates
Fully
Annual Report: Overseas Sales, p. 30,31
and names of countries with either major operations or
that are specifically relevant to the sustainability issues
covered in the report.
Annual Report: Procurement, p. 31-35
ProfileDescription
Reported
2.6
Nature of ownership and legal form.
Fully
Appendix 4: Governance
2.7
Markets served (including geographic breakdown,
Fully
Annual Report: Virtual Trading Point Sales, p. 25-27
Annual Report: Energy Company and Industrial Sales,
sectors served and types of customers/beneficiaries).
p. 27–30
Annual Report: Overseas Sales, p. 30,31
2.8
Scale of the reporting organisation.
Fully
2.9
Significant changes during the reporting period
Omitted
Annual Report: Outline in Figures, p. 57
Annual Report: Personnel and Organisation, p. 58,59
No significant changes have taken
regarding size, structure or ownership.
place during the reporting period regarding size, structure or ownership.
2.10
Awards received in the reporting period.
GasTerra has received no awards
Omitted
during the reporting period.
Report Parameters
3.1
Reporting period (e.g. fiscal/calendar year) for
Fully
Annual Report: Reading Guide, p. 15
information provided.
3.2
Date of most recent previous report (if any).
Omitted
3.3
Reporting cycle (annual, biennial, etc.)
Omitted
3.4
Contact point for questions regarding the report
Fully
29-03-2012
Annual
Annual Report: Response, p. 64
Annual Report: GasTerra BV, p. 90
or its contents.
3.5
Process for defining report content.
Fully
3.6
Boundary of the report.
Omitted
Annual Report: Stakeholder Dialogue, p. 45-47
Boundary set for GasTerra –
wherever the term GasTerra is
used – refers to GasTerra BV.
3.7
State any specific limitations on the scope
Fully
3.8
Basis for reporting on joint ventures, subsidiaries,
or boundary of the report.
Omitted
This section does not apply to
leased facilities, outsourced operations and other entities
GasTerra. GasTerra has no joint
that can significantly affect comparability from period
ventures, subsidiaries, leased
to period and/or between reporting organisations.
facilities or outsourced operations.
ProfileDescription
3.9
Data measurement techniques and the bases of
Reported
Omitted
calculations, including assumptions and techniques
GasTerra.
underlying estimations applied to the compilation of
the indicators and other information in the report.
3.10
Explanation of the effect of any re-statements of
Omitted
No significant changes have
information provided in earlier reports and the reasons
occurred with respect to 2011.
for such re-statement, e.g. mergers/acquisitions, change
of base years/periods, nature of business, measurement
methods.
3.11
Significant changes from previous reporting periods in
Omitted
No significant changes have
the scope, boundary or measurement methods applied
occurred with respect to 2011.
in the report.
3.12
Table identifying the location of the Standard
Appendix 5: GRI Index
Disclosures in the report.
3.13
Policy and current practice with regard to seeking
Fully
external assurance for the report.
Annual Report: Independent Auditor’s Report, p. 86,87
Annual Report: Independent Assurance Report, p. 88,89
Governance, Commitments and Engagement
4.1
Governance structure of the organisation, including
Fully
committees under the highest governance body
Appendix 1: Member Backgrounds (Board of Management
responsible for specific tasks, such as setting strategy
and Board of Supervisory Directors)
or organisational oversight.
4.2
Indicate whether the Chair of the highest governance
Fully
body is also an executive officer and if so, state his/her
position within the context of the organisation and the
reasons for this situation.
4.3
For organisations that have a unitary board structure,
Fully
state the number of members of the highest governance
body that are independent and/or non-executive
members.
ProfileDescription
4.4
Mechanisms for shareholders and employees to
Reported
Fully
provide recommendations or direction to the
Annual Report: Personnel and Organisation, p. 58-61
highest governance body.
4.5
Linkage between compensation for members of
Omitted
This indicator has not been
the highest governance body, senior managers and
reported.
executives (including departure arrangements) and
the organisation’s performance (including social
and environmental performance).
4.6
Processes in place for the highest governance body
Fully
to ensure conflicts of interest are avoided.
4.7
Process for determining the qualifications and
Annual Report: Codes of Conduct and Procedures,
p. 62,63
Omitted
expertise of the members of the highest governance
reported.
body in terms of the organisation’s strategy relating
to economic, environmental and social topics.
4.8
Internally developed statements of mission or
Fully
values, codes of conduct and principles relevant to
economic, environmental and social performance
p. 62,63
and the status of their implementation.
4.9
Procedures of the highest governance body for
Fully
Annual Report: Message from the Board of
overseeing the organisation’s analysis and
Supervisory Directors, p. 84,85
management of economic, environmental and social
performance, including relevant risks and opportunities,
and adherence or compliance with internationally
agreed standards, codes of conduct and principles.
4.10
Processes for evaluating the highest governance
Fully
body’s own performance, particularly with respect
Supervisory Directors, p. 84,85
to economic, environmental and social performance.
4.11
Explanation of whether and how the precautionary
approach or principle is addressed by the organisation.
Annual Report: Message from the Board of
Omitted
reported.
ProfileDescription
4.12
Externally developed economic, environmental and
Reported
Omitted
These indicators have not been
social charters, principles or other initiatives to which
reported.
the organisation subscribes or endorses.
4.13
Memberships in associations, e.g. industry associations,
Partially
and/or national/international advocacy organisations.
Annual Report: European Legislation, p. 36-38
Annual Report: Green Gas, p. 50
Annual Report: Knowledge and Education, p. 51-53
Appendix 7: Knowledge, Education and Innovation Projects
4.14
List of stakeholder groups engaged by the organisation.
Fully
4.15
Basis for identification and selection of stakeholders
Fully
Fully
Fully
with whom to engage.
4.16
Approaches to stakeholder engagement, including
frequency of engagement by type and by stakeholder
group
4.17
Key topics and concerns that have been raised through
stakeholder engagement and how the organisation
has responded to those key topics and concerns,
including its reporting.
ProfileDescription
Reported
Economic
EC1
Direct economic value generated and distributed,
Partially
including revenues, operating costs, employee
compensation, donations and other community
investments, retained earnings and payments to
capital providers and governments.
EC2
Financial implications and other risks and opportunities
Omitted
for the organisation’s activities due to climate change.
EC3
Coverage of the organisation’s defined benefit plan
reported.
Fully
Annual Report: Personnel and Organisation, p. 60
obligations.
EC4
Significant financial assistance received from government. Omitted
GasTerra.
EC5
Range of ratios of standard entry level wage by
Omitted
gender, compared to local minimum wage at
reported.
significant locations of operation.
EC6
Policy, practices and proportion of spending on
Omitted
locally-based suppliers at significant locations of
reported.
operation.
EC7
Procedures for local hiring and proportion of senior
Partially
management hired from the local community at
Only procedures for local
iring have been reported.
significant locations of operation.
EC8
Development and impact of infrastructure investments
Omitted
and services provided primarily for public benefit through
reported.
commercial, in-kind or pro bono engagement.
EC9
Understanding and describing significant indirect
economic impact, including the extent of impact.
Omitted
reported.
ProfileDescription
Reported
Environmental
EN1
Materials used by weight or volume.
Omitted
This indicator is not relevant to
GasTerra As a trading company,
GasTerra does not consume
substantial quantities of materials.
EN2
Percentage of materials used that are recycled
Omitted
input materials.
EN3
Direct energy consumption by primary
reported.
Fully
Annual Report: New Office Premises, p. 64
energy source.
EN4
Indirect energy consumption by primary
Omitted
source.
EN5
Energy saved due to conservation
reported.
Omitted
and efficiency improvements.
EN6
EN7
Initiatives to provide energy-efficient or renewable
reported.
Fully
energy-based products and services, and reductions
p. 43,44
in energy requirements as a result of these initiatives.
Annual Report: New Office Premises, p. 63-65
Initiatives to reduce indirect energy consumption
Omitted
and reductions achieved.
EN8
Annual Report: Corporate Social Responsibility,
Total water withdrawal by source.
reported.
Omitted
GasTerra GasTerra is a trading
company, consequently it uses
mains water for offices-based
operations only. No substantial
quantities.
EN9
Water sources significantly affected by
Omitted
withdrawal of water.
GasTerra GasTerra is a trading
company, consequently it uses
mains water for offices-based
operations only. No substantial
quantities.
EN10
Percentage and total volume of
water recycled and reused.
Omitted
These indicators have not
been reported.
ProfileDescription
EN11
Reported
Location and size of land owned, leased, managed in or Omitted
These indicators have
adjacent to protected areas and areas of high biodiversity
not been reported.
value outside protected areas.
EN12
Description of significant impact of activities, products
Omitted
and services on biodiversity in protected areas and areas
been reported.
of high biodiversity value outside protected areas.
EN13
Habitats protected or restored.
Omitted
been reported.
EN14
Strategies, current actions and future plans for
Omitted
managing impact on biodiversity.
EN15
Number of IUCN Red List species and national
been reported.
Omitted
conservation list species with habitats in areas affected
been reported
by operations, by level of extinction risk.
EN16
Total direct and indirect greenhouse gas emissions
Omitted
by weight.
EN17
Other relevant indirect greenhouse gas emissions
reported.
Omitted
by weight.
EN18
Initiatives to reduce greenhouse gas emissions
Emissions of ozone-depleting substances by weight.
reported.
Omitted
and any reductions achieved.
EN19
reported.
Omitted
been reported.
EN20
NOx, SOx and other significant air emissions by
Omitted
type and weight.
EN21
Total water discharge by quality and destination.
been reported.
Omitted
been reported.
EN22
Total weight of waste by type and disposal method.
Omitted
been reported.
EN23
Total number and volume of significant spills.
Omitted
EN24
Weight of transported, imported, exported or treated
Omitted
been reported.
waste deemed hazardous under the terms of the Basel
Convention Annex I, II, III and VIII and percentage of
transported waste shipped internationally.
been reported.
ProfileDescription
EN25
Identity, size, protected status and biodiversity value of
Reported
Omitted
water bodies and related habitats significantly affected
been reported.
by the reporting organisation’s discharge of water and
runoff.
EN26
Initiatives to mitigate environmental impact of products
Fully
and services and extent of impact mitigation.
Annual Report: Green Gas, p. 49,50
Annual Report: Knowledge and Education, p. 51-53
Annual Report: Innovation, p. 53-55
Annual Report: New Office Premises, p. 63-65
Appendix 7: Knowledge, Education and Innovation Projects
EN27
Percentage of products sold and their packaging
Omitted
materials that are reclaimed by category.
EN28
Monetary value of significant fines and total number
been reported.
Omitted
of non-monetary sanctions for non-compliance with
been reported.
environmental laws and regulations.
EN29
Significant environmental impact of transporting
Omitted
products and other goods and materials used for the
been reported.
organisation’s operations and transporting members
of the workforce.
EN30
Total environmental protection expenditures
Omitted
and investments by type.
been reported.
Social Working Conditions
LA1
Total workforce by employment type, employment
Fully
contract and region, broken down by gender.
LA2
Total number and rate of new employee hires and
Fully
employee turnover by age group, gender and region.
LA3
Benefits provided to full-time employees that are not
Omitted
provided to temporary or part-time employees, by
reported.
major operations.
LA4
Percentage of employees covered by collective
labour agreements.
Fully
Annual Report: Personnel and Organisation, p. 60
ProfileDescription
LA5
Minimum notice period(s) regarding significant
Reported
Omitted
operational changes, including whether it is specified
reported.
in collective agreements.
LA6
Percentage of total workforce represented in formal
Omitted
joint management-worker health and safety committees
reported.
that help monitor and advise on occupational health and
safety programmes.
LA7
Rates of injury, occupational diseases, lost days and
Fully
absenteeism and number of work-related fatalities by
region and by gender
LA8
Education, training, counselling, prevention and
Omitted
risk-control programmes in place to assist workforce
reported.
members, their families or community members
regarding serious diseases.
LA9
Health and safety topics covered in formal
Omitted
agreements with trade unions.
LA10
LA11
Average hours of training per year per employee
reported.
Omitted
by gender and by employee category.
reported.
Programmes for skills management and lifelong learning Omitted
that support the continued employability of employees
reported.
and assist them in managing career endings.
LA12
Percentage of employees receiving regular performance
Omitted
and career development reviews, by gender
LA13
Composition of governance bodies and break-down of
reported.
Fully
employees per employee category according to gender,
age group, minority group membership and other
indicators of diversity.
LA14
Ratio of basic salary and remuneration of women to
men by employee category, by significant locations of
operation.
Omitted
reported.
ProfileDescription
Reported
Social: Human Rights
HR1
Percentage and total number of significant investment
Omitted
agreements and contracts that include clauses incorpo-
reported.
rating human rights concerns or that have undergone
human rights screening.
HR2
Percentage of significant suppliers, contractors and
Omitted
other business partners that have undergone human
reported.
rights screening and actions taken.
HR3
Total hours of employee training on policies and
Omitted
procedures concerning aspects of human rights that
reported.
are relevant to operations, including the percentage
of employees trained.
HR4
Total number of incidents of discrimination and
Omitted
corrective actions taken.
HR5
Operations and significant suppliers identified in which
reported.
Omitted
the right to exercise freedom of association and collective
reported.
bargaining may be violated orat significant risk and
actions taken to support these rights.
HR6
Operations and significant suppliers identified as having
Omitted
significant risk for incidents of child labour and measures
reported.
taken to contribute to the effective abolition of child
labour.
HR7
Operations and significant suppliers identified as having
Omitted
significant risk for incidents of forced or compulsory
reported.
labour and measures to contribute to the elimination of
all forms of forced or compulsory labour.
HR8
Percentage of security personnel trained in the
Omitted
reported.
organisation’s policies or procedures concerning aspects
of human rights that are relevant to operations.
HR9
Total number of incidents of violations involving rights
of indigenous people and actions taken.
Omitted
reported.
ProfileDescription
Reported
Social: Society
SO1
Nature, scale and effectiveness of all programmes and
Fully
methods that determine and manage the effects of ope-
Annual Report: Sponsorship and Advertising 55-57
Appendix 8: Sponsorship and Donations
rations on local communities, including sites, operations
and decommissioning.
SO2
Percentage and total number of business units analysed
Omitted
This indicator has not
for risks related to corruption.
SO3
Percentage of employees trained in organisation’s
been reported.
Fully
anti-corruption policies and procedures.
p. 62,63
SO4
Actions taken in response to incidents of corruption.
Omitted
SO5
Public policy positions and participation
Fully
No instances of corruption
have been detected.
in public policy development and lobbying.
Annual Report: CEO’s Message 7-9
Annual Report: Market Trends, p. 23,24
Annual Report: Procurement, p. 31-35
Annual Report: European Legislation, p. 36-38
Annual Report: Dutch Legislation, p. 39
Annual Report: Risk Management, p. 41-43
SO6
Total value of financial and in-kind contributions to
Omitted
political parties, politicians and related institutions
been reported.
by country.
SO7
Total number of legal actions for anti-competitive
behaviour, anti-trust, and monopoly practices and
been reported.
their outcomes.
SO8
Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with laws
and regulations.
Omitted
been reported.
ProfileDescription
Reported
Social Product Responsibility
PR1
Life cycle stages in which health and safety impact of
Omitted
products and services are assessed for improvement
been reported.
and percentage of significant products and services
categories subject to such procedures.
PR2
Total number of incidents of non-compliance with
Omitted
regulations and voluntary codes concerning health
been reported.
and safety impact of products and services during
their life cycle, by type of outcomes.
PR3
Type of product and service information required by
Omitted
procedures and percentage of significant products and
been reported.
services subject to such information requirements.
PR4
Omitted
regulations and voluntary codes concerning product and
been reported.
service information and labelling, by type of outcomes.
PR5
Practices related to customer satisfaction, including
Omitted
results of surveys measuring customer satisfaction.
PR6
Programmes for adherence to laws, standards and
been reported.
Omitted
voluntary codes related to marketing communications,
been reported.
including advertising, promotion and sponsorship.
PR7
Omitted
regulations and voluntary codes concerning marketing
been reported.
communications, including advertising, promotion and
sponsorship by type of outcomes.
PR8
Total number of substantiated complaints regarding
Omitted
breaches of customer privacy and losses of customer
been reported.
data.
PR9
Monetary value of significant fines for non-compliance
with laws and regulations concerning the provision and
use of products and services.
Omitted
been reported.
Appendix 6
Certification Documents
GasTerra aims to procure exclusively green gas, the origin of which can be certified to be green. GasTerra has stipulated four
conditions together with financial advisory firm KPMG. GasTerra is prepared to procure gas labelled as green gas if its producer or
the production facility satisfies one or more of these conditions:
1.REIS subsidy granted to production facility
2.REIS subsidy granted for production
3. Vertogas or Decra certificate awarded
4.NTA 8080 certificate
These conditions are discussed below in more detail.
1.REIS Subsidy Granted to Production Facility
The Dutch Minister of Economic Affairs may grant subsidies to producers on request for production of sustainably produced gas
pursuant to the Besluit Stimulering Duurzame Energieproductie (SDE) [Dutch Renewable Energy Incentive Scheme (REIS
programme)]. REIS subsidies are allocated for a given period to partially or fully compensate producers for any difference between
the average cost price and the corresponding average market price for renewable gas. The NL Agency – a division of the Dutch
Ministry of Economic Affairs – regularly publishes listings for projects awarded an REIS subsidy. The volume of green gas produced
at these facilities is determined based on allocation data for these sites.
2.REIS Subsidy Granted for Production
The amount of the REIS subsidy is dependent on the volume of green gas produced. Production levels at production facilities with
a positive ruling should be measured pursuant to the Gaswet [Dutch Gas Act] by an accredited metering institution. These readings
(allocation data) show how much green gas a site has produced. If a positive REIS ruling has a temporary nature, then receipt of an
REIS subsidy for the volume of green gas produced is regarded as being definitive proof of the gas’ green origins. Every calendar
year, producers are obliged to submit a declaration to the Minister vouching for the renewable origin of the biomass used. This
declaration should be enclosed with a supporting audit certificate. If it has been determined that a facility’s production no longer
satisfies (or insufficiently satisfies) REIS subsidy criteria, then subsidies already granted must be paid back.
3. Vertogas or Decra Certificate
An official system of certification for green gas does not yet exist in the Netherlands. Nevertheless, various Dutch organisations are
already certifying green gas. Vertogas and Decra are the two best-known organisations. Producers have to satisfy various
requirements before being awarded a certificate. Important points in this respect include the way in which energy is measured and
whether production facilities and the raw materials used are suitable for the production of green gas.
1 | GasTerra annual report 2012 | Certification Documents
4.NTA 8080 Certificate
Nederlandse Technische Afspraak (NTA) [Dutch Technical Agreement] 8080 stipulates the conditions for sustainable biomass for fuel
production purposes. With an NTA 8080 certificate, producers, processors or traders can demonstrate that the biomass produced,
processed or traded meets international sustainability criteria. A certificate can be obtained from the NTA 8080 organisation subject
to audit. Certification is valid for five years, but may also be revoked annually subject to interim assessments. GasTerra can verify
whether a production facility has been NTA 8080 certified by consulting a register at www.duurzame-biomassa.org.
2 | GasTerra Jaarverslag 2012 | Certificeringscondities
Appendix 7
Overview of knowledge, education and
innovation projects
De Jonge Onderzoekers
Stichting De Jonge Onderzoekers Groningen [The Young Researchers Foundation, Groningen] stimulates children ages 6 to 18 to
learn more about technology and science. GasTerra supported this foundation in 2012 to help teach children of 8 years old and
older about renewable and non-renewable energy, and provided technical materials such as building kits. According to reports from
the foundation, the technical building kits were used intensively last summer.
www.dejongeonderzoekers.nl
weCARE
The weCARE project was a joint competition between the sixth-form classes of two secondary schools in Groningen and Haren,
who, for one year, competed with one another to see which class could save the most energy at school. weCARE stands for: ‘we
Create Awareness. Reduce Energy’. Due to its success, the Energy Valley Topclub (in which GasTerra is actively involved) decided to
create an even greater follow-up to this successful project, under the name Energy Challenges. More than ten secondary schools
from the Energy Valley will compete in this Challenge starting in late 2012. Measuring equipment was installed in the school
buildings to map out the energy flows. A special focus will be placed on energy in the schools. The goal of the project is, on the
one hand, to raise awareness about energy consumption among young people, and on the other hand, to realise energy savings at
the schools, primarily through a change in habits when it comes to energy consumption.
www.energyvalleytopclub.nl
Annual GasTerra Transition Prize
The Annual GasTerra Transition Prize is a competition that challenges students in higher professional education (HBO) to come up
with the best idea for the transition from fossil fuels to renewable energy. The students are encouraged to submit ideas for lowering
energy demand, to promote the use of renewable sources of energy, to reduce CO2 emissions, or to increase efficiency from the
use of fossil fuels. Prize money totalled over €100,000. Students from the Hogeschool van Amsterdam won the Annual GasTerra
Transition Prize 2012 with an idea for a smart energy system that shuts off electrical sockets when they’re not in use. The students
were rewarded with prize money of 10,000 Euros, and the university received 40,000 Euros to use toward the further development
of the ‘Flexnet’. Prior to this fourth edition of the competition, GasTerra gave lectures on energy at over 20 universities of applied
sciences for the first time. During these lectures, brainstorm sessions were held with the students on innovative, creative and sustainable ideas for the Annual GasTerra Transition Prize. Given the positive response and the pro-active demand from various schools
of higher education, this approach will be repeated in 2013. In 2013, GasTerra will further expand on the scope of the Annual
GasTerra Transition Prize. Students will not only be able to submit their own ideas, but in 2013, they will also be able to write a case
study for an existing business. To read more about the cases and for further information, go to www.gasterratransitiejaarprijs.nl.
NRG Battle
Sponsored by GasTerra, the NRG Battle is an annual competition where teams of students work on innovative solutions to
companies’ energy problems. In addition to being a think-tank from which great ideas emerge, the Battle is also an effective means
of recruitment and selection for companies operating in the energy sector. During the NRG Battle-Europe 2012 Edition, student
teams worked on the solution to an energy problem submitted by business. GasTerra asked the talented young people to think
about the question of how gas can play a role in the coming years in addition to renewable sources. Also, how the energy sector in
the Netherlands and Europe can ensure that the rest of the world also does its part to reduce CO2 emissions. The teams presented
1 | GasTerra annual report 2012 | Overview of knowledge, education and innovation projects
their ideas during three preliminary rounds. The five best teams in each preliminary round competed with one another for first prize
on 20 November 2012 during the Energy Delta Convention. Team FUJIFILM was the winner. In 2012, an NRG Battle-World Edition
was also held for the first time during the World Gas Conference.
Watt Nu?
Watt Nu? is a weekly television programme on RTLZ in which famous (and not-so-famous) experts discuss a sustainable future for
energy in the Netherlands. Policymakers, captains of industry and renowned scientists talk about the measures we must take in
order to achieve this sustainable energy future. The objective is to create broad public awareness about the topic of energy
transition and the energy transition model.
www.wattnu.nl
The Missing Chapter Foundation
The Missing Chapter Foundation is an organisation that aims to involve children in major issues that are determinative for the
earth’s future. As one of the founding partners, GasTerra supports the idea that children can make valuable contributions to and
express their views about sustainability and other themes.
During the autumn of 2011, GasTerra was paired with two primary school classes that formed GasTerra’s own ‘Raad van Kinderen’
(Board of Children). The classes involved are the final year at the De Kromme Akers primary school in Garnwerd and the special
class for gifted children at Schoolbestuur Lauwers & Eems, a school collective in North Groningen. The main question presented to
this group of around 40 children was ‘How can GasTerra make sure that primary school pupils acquire more knowledge about the
topic of energy?’ The group proposed various ideas on ways to provide children with knowledge on energy; the ideas ranged from
a board game to a musical about the energy problem, and from a computer game to a comic strip. GasTerra is currently studying
other ideas which could be elaborated on further.
GasTerra also asked the children to help them come up with ideas for encouraging its own staff members to take a more
sustainable and conscious approach to their own energy consumption. As part of this assignment, the children create works of art
to help remind the employees how to conserve energy. These works will be displayed in our new office.
Energy Academy Europe and EnTranCe
Over the coming years, Energy Academy Europe (EAE) aims to develop to become the international educational institution for
energy study programmes. GasTerra, Energy Valley, the University of Groningen and the Hanze University of Applied Sciences
Groningen all work closely together within the EAE, the goal of which is to ensure that the Netherlands and Groningen in particular
acquire a prominent position in the field of energy and renewable fuels.
In 2012, in a partnership with the EAE, BAM, Gasunie, Imteh and RWE, GasTerra started the experimental energy test centre
EnTranCe (Energy Transition Centre) at the Zernikepark. EnTranCe is the practical learning environment where intermediate and
higher vocational education and university students conduct research together with businesses into our future energy supply, with
natural gas as the foundation. www.energyacademy.org
Higher secondary education (HAVO) and pre-university (VWO) teaching packages
GasTerra offers HAVO and VWO schools teaching packages on making our energy supply more sustainable. Entitled ‘Energy for
Now and Later’, the materials are intended to fill one a one hour lesson. The teaching materials show students how energy choices
affect other (social) interests and that it is not easy to arrive at the ‘best energy solutions’. The teaching packages may be requested
free of charge via our website www.gasterra.nl. A total of 75 teaching packages have been published.
In 2012, GasTerra also started developing teaching packages for primary school education (groups 5, 6, 7, and 8) under the name
‘Talent and Energy’.
Your Energy - Tomorrow
With the project Jouw Energie van Morgen (Your Energy of Tomorrow), the University of Groningen and GasTerra aim to get HAVO
and VWO (higher general secondary and pre-university education) students interested in studies that are offered via the Energy
Academy Europe. The project’s real attention-getter is a travelling laboratory/classroom; a truck with a 20-metre long trailer,
equipped with iPads, solar panels and a retractable wind turbine. This trailer uses the energy transition model, amongst others.
www.jouwenergievanmorgen.nl
Ameland Hydrogen Conference
The energy sector has been experimenting for quite some time with techniques for converting (renewable) electricity into hydrogen. This will enable energy surpluses to be stored quickly and temporarily, or used for another purpose. Over the past few years,
GasTerra, Eneco, Joulz and Stedin have conducted tests at fourteen homes in the Noorderlicht apartment complex in Nes (island of
Ameland) to determine the effects of adding hydrogen to the gas mains. Hydrogen has been injected into the natural gas pipelines
since 2007. On 20 September 2012, the results of this pilot project were presented at the Ameland Hydrogen Conference.
The parties involved had observed that even adding up to 20% hydrogen did not lead to adverse effects for the users. The mixture
also did not prove to be detrimental to the application of different types of pipeline materials and gas appliances, such as highefficiency boilers and cookers. The option of using hydrogen on a large scale as an energy carrier is expensive at present, but it
has been shown that renewable energy and natural gas can work well together. To GasTerra’s great satisfaction, the conference
attracted nearly 100 visitors. A study involving 14 homes is a unique project by European standards. The knowledge gained is made
available for further studies that Gasunie, DNV KEMA and Greenpeace are going to carry out in Germany.
Energy Transition Model
GasTerra is the main sponsor of the energy transition model developed by Quintel Intelligence, a model that can show the effect
of energy decisions. GasTerra commissioned Quintel Intelligence to develop separate user interfaces for various target groups. The
original model will also be further developed and refined. The energy transition model will be used at events such as ‘discussion
dinners’ which will be held monthly, the goal of which is to create a greater awareness for the model.
www.energietransitiemodel.nl
Green Dream District
GasTerra is once again sponsoring the Green Dream District children’s television programme. In Green Dream District, children aged
8 to 13 present their entries for ‘most sustainable invention of the year’. When the National Geographic channel stopped broadcasting the programme in 2012, it moved to the Disney XD network in order to realise a better connection with the target group.
www.greendreamdistrict.nl
High-Efficiency Eco-Boilers
The HEe boiler is a boiler that produces both heat and electricity. GasTerra has been involved in the development of the HEe boiler
via the Smart Power Foundation. GasTerra set up this foundation together with several manufacturers. The foundation focuses on
the development of the HEe boiler, and tackles bottlenecks relating to system installation, regulation and subsidies.
www.smartpowerfoundation.nl
Fuel cell research
GasTerra has initiated a study on fuel cells that will be conducted until late 2013 at the gas research institute Kiwa in Apeldoorn.
The objective of this study is to determine which fuel cells are most suitable for installing in built environments in the Netherlands.
Fuel cells from all over the world are sent to Apeldoorn where they are modified for natural gas from Groningen. The efficiency and
emissions of fuel cells are then tested. If the fuel cells appear to be suitable for Dutch homes, they are then subjected to an
endurance test. If the outcome of this endurance test is positive, a practical test in a home will then be carried out.
Practical tests with fuel cells
GasTerra would like to test fuel cells on a larger scale and in different built environments. This form of micro-CHP (combined heat
and power) is capable of converting natural gas to electricity at an unusually high efficiency rate. Fuel cells have been placed in
homes in Haren (province of Groningen), Amsterdam, and in 2012 in the experimental energy test centre EnTranCe (10 units) at the
Hanze University of Applied Sciences in Groningen. GasTerra has also made preparations to link 50 fuel cells in Ameland in 2013
(as a so-called Virtual Power Plant) to the electricity grid, which will also be connected to a solar panel farm, a succession of a large
number of solar panels. The function of the fuel cells will be to equilibrate the electricity grid. For example, if the solar panels are
temporarily not producing enough electricity (during the night or on cloudy days), the fuel cells will quickly respond. Similar pilot
projects are currently being prepared for 2013 and 2014 in Heerhugowaard, the Veenkoloniën in Groningen and Hooghalen in the
province of Drenthe.
Microturbine for SMEs
The Dutch company MTT has developed a mini-CHP based on a gas turbine for the small business market. GasTerra is supporting
this development and together with MTT will install a demonstration model of the small gas turbine in the experimental energy
test centre EnTranCe. With a maximum capacity of 5 kWe, the compact MTT gas turbine is characterised by the simplicity of its
construction, thus offering opportunities for a potentially low cost price for mini-CHPs.
CHP applications for a steam boiler
The Dutch company Innecs has developed a gas turbine module (PowerBurner) that may be installed in an existing steam boiler,
enabling a boiler to be converted to a CHP system (combined heat and power).GasTerra is supporting the development of the
PowerBurner. The development was successfully completed in 2012, and field trials are being conducted using a prototype.
GasTerra will set up a practical demonstration with Innecs in 2013. Innecs’ system increases the likelihood of a growth in CHPs in
the Netherlands since an existing boiler system may be converted to CHP for a relatively low investment amount.
Green gas
Via the Nieuw Gas platform (New Gas Platform) and the Stichting Groen Gas Nederland (Dutch Green Gas Foundation), GasTerra is
involved in the development, demonstrations and promotion of the uses of green gas. In collaboration with Energy Valley and the
company Proces, a study was conducted in 2012 into the biomass gasification of roadside grass clippings. Roadside grass clippings
have shown to be extremely suitable as biomass for the production of green gas. In cooperation with Proces, the possibilities for
conducting follow-up studies in the EnTranCe experimental energy test centre are now being examined.
Energiepodium debate and dinners
An initiative of GasTerra and set up in 2011, the debate site www.energiepodium.nl was created to encourage a dialogue in the
energy sector, and has shown to be a good foundation for getting other activities started which dovetail with GasTerra’s knowledge
and educational goals. A second Energiepodium debate was held in 2012, in the presence of 100 energy experts. Additionally, 12
so-called ‘energiepodium dinners’ were held in various locations throughout the Netherlands. At these dinners, aided by the energy
transition model, a group of managers, politicians, business owners, industrial executives, scientists and environmental experts, all
of whom are involved in the energy sector, engaged in discussions on an energy theme selected in advance. Up to the present, 134
people have participated in these events.
World Gas Conference
GasTerra is a member of the International Gas Union (IGU). The IGU stimulates the transfer of knowledge between its members to
foster technological and economic progress in the gas sector, and defends the interests of the sector. Once every three years, the
IGU holds a World Gas Conference (WGC) somewhere in the world. This event consists of a conference in combination with a trade
fair. The theme of the 2012 event was ‘Gas: Sustaining Future Global Growth’. Various natural-gas related topics aligned with this
theme were addressed during discussions, presentations and workshops. GasTerra participated in the exhibition together with the
Dutch companies A. Hak, DNV Kema, EBN, Energy Delta Institute, Gasunie, and TNO. Thanks to a collective manning of the stand,
the companies wanted to show that the Netherlands is a true natural gas country, and that is possesses a great deal of knowledge
on the various aspects involved in the natural gas chain. This was also expressed in the collective slogan, ‘The Power of Dutch Gas’.
Project Delta Group
The Project Delta Group (PDG) is a public-private collaboration. The Ministry of Economic Affairs, Dutch knowledge institutes and
the Dutch business community have bundled their strengths in this project, including GasTerra. For two years now, the PDG and the
Russian natural gas company Gazprom have been working on the technological innovation and project-based partnership between
the two countries to foster the sustainable development of the energy sector. Gazprom’s contribution to this effort is to limit the
environmental impact of CO2 emissions, landscape pollution, flare gas, and light and sound emissions in new projects. In 2012, the
independent Clingendael International Energy Programme (CIEP) submitted a briefing paper on this partnership entitled ‘Energiediplomatie nieuwe stijl: Publiek private samenwerking’. This paper recognises the added value of public-private partnerships, and
asserts that the same approach also has potential applications in partnerships with other countries.
Appendix 8
Summary of Sponsorship and Donations 2012
Sponsorship
NAME/ORGANIzATIONSUBJECT
Diamond sponsorship NRG Battle 2012Sponsorship of Energy Battle 2012
Energy Delta ConventionEnergy Delta Convention 2012
Eurosonic Noorderslag (Grunnsonic)Eurosonic/Noorderslag Groningen music event
EurovoetbalEurovoetbal - youth football tournament, Groningen
Forum Groningen
Forum Groningen
GasTerra Flames
Groningen basketball team
GasTerra for Life
GasTerra personnel cycling trip
GasTerra Ladiesrun
GasTerra Ladies Run 2012
Groninger Harense Hockey Club
Hockey season
Groninger Museum
Groninger Museum
Hanze University of Applied Sciences Groningen
HBO talent prize 2012
Holland Nordic Basketball Tourn.
Groningen Int’l. Basketball Tournament
MagneetSchool sponsorship, bus
Missing Chapter Foundation
Board of Children
NNO
Bommen Berend concert, 28 August 2012
Oranjevereniging GroningenPerformance by Noord Nederlands orchestra
Pinksterfeesten DelfzijlPinksterfeesten Delfzijl (Whitsun festival)
Prins Claus ConservatoriumPrins Claus Conservatory
Scholtenhuis
War monument, Groningen
SPDCRusPrix 2012
Swingin’ GroningenSwinging Groningen 2012 + award
Topsport Steunpunt Noord
Topsport Steunpunt Noord
VNO NCW NoordNetworking evening
Topsport Noord NederlandStreetball
TorenwachterPerformance at Martini Tower, summer 2012
Vereniging Volksvermaken GroningenNNO concert, 28 August 2012
Schaakclub Groningen
Chess club + youth tournament
Stadspark Open
Golf tournament, Stadspark 2012
Voetbalvereniging De Held
Youth football tournament, 2012
Voorwaarts, VoorwaartsSponsorship of boat, Groningen
1 | GasTerra annual report 2012 | sponsorship and donations
Appendix 8
Summary of Sponsorship and Donations 2012
Donations
Wildervank monument and concert committee
Contribution to expansion of church organ for cultural events
Heerentocht, EngelbertSpin marathon for KWF Kankerbestrijding
University of Groningen
Contribution for international conference on language and the
brain (aphasia and dementia)
Cantatrix vocal ensemble
Cantatrix fifth anniversary concert
Kolham donations committee Contribution toward construction of park on outskirts of Kolham
(nature playground for children), in cooperation with Dutch
Forestry Commission
Mr W. Kempering
Gala dinner to benefit Duchenne’s disease (table for eight)
TAM Open
Donation for tennis tournament
8 hours of overtime for a charity
Contribution to creative teams for charity in Groningen
Promotion of GasTerra Campaign, ‘I’m part of the solution’
Internal campaign for employees (vote for five selected charities,
each of which will receive a financial contribution)
Radio 538
Fundraising campaign in Groningen for Warchild
HumanitasLanguage support for migrants in Groningen
Te Gast in Garnwerd
Contribution to the chamber music festival in Garnwerd
Capella Groningen
Contribution to the early-music chamber choir
FAS Stichting
Family weekend for children with Fetal Alcohol Syndrome
Stichting Buitenplaats Eelde
Donation/membership to Eelde Museum
Hanze University Foundation Participation in Inspiration Breakfast (breakfast for companies
from the Northern Netherlands and talented students)
OBS De Ploeg Hoogkerk
Contribution for T-shirts for children for the evening four-day
marathon
Koninklijke Visio (centre for the blind and visually impaired)Attendance by Visio clients of FC Groningen home match
Stichting Voetbalkamp Groningen
Football camp for children in the Groningen area
Request from Energy ValleySponsorship of Hoogkerk cycle race
Junior Kamer GroningenOrganisation of Duckrace for the Beatrix children’s hospital in
Groningen
NOM Participation in Route Development Fund (Groningen Airport
Eelde)
Basisschool Garnwerd
Contribution to children’s charity walk to raise money for solar
panels at schools (via children’s consultative council)
UMCG Sponsorship of PhD Day at University of Groningen
Visitors of Zorgcentrum Groningen activity centreExpression of thanks to volunteer cooks for their efforts in
organising Christmas dinner
Hartstichting
Contribution to colouring and handicrafts book (Project Kind &
Ziekenhuis)
Stichting De Brug Groningen
Contribution to purchase of clothing for participation in the world
games (people with mental disabilities)
Pjotr Jacobs (pianist jazz band)
Jazz concert in Groningen for Playing for Change
(international organization that sets up music schools)
Mytylschool Haren
Contribution to the purchase of tablets for children with multiple
disabilities
Appendix 9
Glossary
Allocation
Assignment of energy volumes to various gas transmission network users.
Balancing
Maintaining gas transmission network in a state of equilibrium.
Biogas
Gas produced by means of waste or manure fermentation, or biomass gasification.
Congestion
A situation in which demand for natural gas is higher than the volume that can physically be transmitted.
Day Ahead
A product offered at virtual natural gas trading points.
Third Energy Package
European legislation aimed at promoting cross-border competition, greater customer choice and competitive rates. The Third Energy
Package came into force in the Netherlands in 2011.
EMIR
European Union regulation on OTC derivatives, central counterparties and trade repositories known as the European Market
Infrastructure Regulation.
Energy Transition
Shift from use of fossil fuels to renewable energy sources.
Entry Points
Points at which natural gas is fed into the gas transmission network.
ETS
Abbreviation for Emissions Trading Scheme in which emission rights are traded.
Exit Points
Points at which natural gas is extracted from the gas transmission network.
Footprint
CO2 emission equivalents that relate to an individual or organization’s activities.
1 | GasTerra annual report 2012 | glossary
Groningen Gas
Natural gas from the Groningen gas field containing relatively high levels of nitrogen causing it to have a lower calorific value than
natural gas from other fields. It is for this reason that it is also referred to as low-calorific gas.
GASPOOL
A virtual natural gas trading point in Germany.
Green Gas
Biogas produced with the same characteristics as conventional natural gas.
GTS
Abbreviation for Gas Transport Services, a transmission system operator and subsidiary of Gasunie.
High-Calorific Gas
Natural gas containing relatively low levels of nitrogen causing it to have a higher calorific value than other sorts of natural gas.
Hub
A virtual or actual trading point for a given region where suppliers and customers transfer/trade in gas.
Dutch Small Field Policy
Dutch government policy aimed at promoting domestic natural gas production in smaller gas fields.
LNG
Abbreviation for liquefied natural gas.
Tangible Issues
Topics affecting accountable business practices.
Environmental Plan for Industry (EPI)
A programme established by GasTerra for industrial customers providing insight into energy usage, as well as technical support for
improved energy efficiency, process optimisation and sustainability.
Multi-Sites
Customers with multiple gas network connections.
NBP
Abbreviation for National Balancing Point, a virtual natural gas trading point in the United Kingdom.
NCG
Abbreviation for NetConnect Germany, a virtual natural gas trading point in Germany.
Network Codes
European codes relating to natural gas transmission, detailing Third Energy Package regulations.
Non-Standard Products
An agreement for which no standardised contract terms & conditions apply.
REMIT
Abbreviation for Regulation in Energy Markets Integrity and Transparency, a sector-specific regulation enacted in 2011.
SBU
Abbreviation for Standard Bundled Unit, a product for contracting natural gas storage.
Shale Gas
Natural gas extracted from dense rocks layers (shale).
Standard Products
An agreement with standardised contract terms and conditions.
Stakeholders
Organizations whose interests may potentially be affected by GasTerra’s activities or conversely organizations that may themselves
affect GasTerra’s interests.
TTF
Abbreviation for Title Transfer Facility, a virtual natural gas trading point in the Netherlands.
Virtual Trading Point
An exchange where products are traded.
Virtual Storage Service (VSS)
A service provided by GasTerra whereby private-sector companies can contract virtual storage of natural gas up to 1.95 billion m³.
Within Day
A product offered at virtual natural gas trading points.

GasTerra

Transcription

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