Gazprom enters UK gas market

Kingston upon Thames, UK — Russian energy giant Gazprom has taken its first steps into the UK energy market with the acquisition of Pennine Natural Gas Ltd’s supply businesses. Terms of the deal were not announced.

PNGL, based in Wilmslow, Cheshire, is a small independent player in the UK gas supply sector. The company supplies commercial enterprises nationwide but those not have a domestic supply license.

In a related deal, Gazprom Marketing and Trading has secured a management deal with Natural Gas Shipping Services Ltd to administer its supply business. The Gazprom subsidiary said it had also secured the rights to purchase the company, for an undisclosed amount.

“Gazprom has always intended to enter the UK gas supply market and this deal offers us an excellent base from which to grow our supply business,” said Vitaly Vasiliev, CEO of Gazprom Marketing and Trading.

“At the present time we plan to concentrate on industrial and commmercial gas customers, but will continue to keep (the option of) entering the domestic market and electricity market under review,” added Vasiliev.

Gazprom claims to be the world’s largest gas producing company, with a 20% share of global production.