Our Business
Continental Gas Storage intends to capitalize on the strong demand for natural gas storage by being the first independent natural gas storage service provider in Europe. The company is utilizing proven business concepts and industry standard engineering and procurement technologies to deliver gas storage services at competitive prices.
In the conventional gas flexibility market, the producer, industrial end user, trader or utility company has traditionally been dependent mostly on products offered by the incumbent, being packaged into a bundle of supply and flexibility. The terms and prices have been very disadvantageous and discouraging. Unbundled from the gas supply, storage access (in most cases) is not possible as capacities are reserved for the long-term mostly within and by the vertically integrated incumbents. According to market research by the European Commission and the Group of European Energy Regulators (ERGEG), most of the current storage capacities are reserved. With the recent changes in both the German and European Union energy markets, the customer is now looking for alternatives.
CGS will offer its customers a lower cost unbundled and highly flexible product its customers can deliver at a liquid virtual trading point. This has a number of advantages for the customer:
- it allows the final customer to acquire unbundled gas commodity as well as flexibility in supply;
- it eliminates the customer’s requirement to acquire discrete packages of flexibility for its gas supply needs and residential distribution needs;
- it allows the customer to manage its energy position from a portfolio management perspective, to optimize its asset performance.
Continental Gas Storage as an independent is positioned very well to offer commercial portfolio management services, since the flexibility is sold via an unbundled product.
The above gives CGS a significant competitive advantage over the majority of gas storage service providers that only offer a bundled product.