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GasTerra B.V.

Annual Report 2012

Natural gas in perspective

2 | GasTerra Jaarverslag 2012

Mission, Vision and Strategy


GasTerras 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

GasTerras 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

GasTerras 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. GasTerras 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

GasTerras 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 companys 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 governments 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.

Table of Contents
Energy is a broad and complex term. All our stakeholders deal

CEOs 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 m 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 GasTerras 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

Miscellaneous 86

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 Auditors Report

86

Independent Assurance Report

88

Procurement 31
Transmission 36
European Legislation

36

Dutch Legislation

39

Risk Management

41

Corporate Social Responsibility

43

Stakeholder Dialogue

44

Green Gas

49

Knowledge and Education

51

Innovation 53
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.

CEOs 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, GasTerras 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 m 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

Gertjan Lankhorst,
CEO GasTerra B.V.

Every government policy measure should raise the same

This annual report differs from last years 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 companys 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 GasTerras 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. GasTerras 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

Legal and Regulatory Affairs


Herbert van Zijll de Jong

Human Resources
Bart Westmaas

Information Technology
Johan Stbler

Communication and Public Affairs

Anton Buijs

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. Stbler, Chief Information Officer


B.A. Westmaas, Chief Human Resources Officer

Directors
M. Blacquire, 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. Stbler,
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 companys 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

14 | GasTerra Jaarverslag 2012

15

Reading Guide
Gas

Green

Groningen

GasTerras core business is


the procurement and sale of
natural gas. General,
commercial and
administrative
developments within the
gas sector, as well as
GasTerras 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. GasTerras foremost
activities in this respect
have been marked using
this icon.

GasTerra is a Groningenbased company that invests


in its staff and in society.
GasTerras 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 GasTerras 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 years 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 CEOs
message, management information and an outline in
figures. The annual report has then been summarised,
followed by a detailed description of GasTerras activities
over the past year. Reference has been made throughout to appendices with supplemental background
information. These appendices can be found on
GasTerras website at www.gasterra.nl.

17

Outline in Figures

2012 2011

Income and Expenditure (in millions of Euros)


Net Turnover

23,381 21,095

Gas Purchases

22,861 20,283

Transmission Costs

505 708

Results (in millions of Euros)


Result before tax

48 48

Net Profit

36 36

Dividend

36 36

Other Financial Information


Investments (in millions of Euros)

13 11

Liquidity Ratio

1.1 1.0

Balance Sheet Data (year-end, in millions of Euros)


Total Assets
Shareholders Equity
Current Liabilities

3,734 4,121
216 216
3,518 3,905

Volumes Sold (in billion m3)


Total Sales

83.4 86.7

- The Netherlands

34.8 38.1

- Rest of Europe

48.6 48.6

Personnel (year-end, in fulltime-equivalenten)


Company Employees

189 197

Health and Safety


Absenteeism (%)

1.4 2.3

Average Absenteeism Rate

1.2 1.4

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 m 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 m).

portion of the total volume of gas sold by GasTerra that

This was 2.4 billion m 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 m 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 m from small fields in

customers in 2012 were marked by high supply levels and

2012, a decrease of 1.5 billion m with respect to 2011.

heavy competition. GasTerra supplied a total of

This decrease can be attributed to declining production

11.5 billion m of gas to these customer segments in

levels from existing fields. In 2013, GasTerra aims to

2012 4 billion m of which on the TTF a decrease of

offer producers the option to link supply to production

3.9 billion m 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 m. These stable

Sundry Procurement

export figures can be attributed to long-term contracts

In 2012, GasTerra procured a total of 10.3 billion m 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

20 | GasTerra Annual report 2012

21

Green Gas

Innovation

Codes of Conduct and Procedures

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

Corporate Social Responsibility

declarations were converted into procurement and sales

the gas supply in fourteen homes. Results for this pilot

way GasTerras 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 GasTerras 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.

Knowledge and Education


In 2012, GasTerra invested 2.4 million into knowledge

Personnel and Organization

and education, the largest portion of which was

GasTerras 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

83 billion m3 of natural gas =


290.000 km2 of coniferous forest

Report on Activities

What is the equivalent of the


total volume of natural gas
(83 billion m) 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

The energy content of


83 billion m of natural gas
is the same as the amount
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

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

24 | GasTerra Annual report 2012

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 m. 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 m of gas in

13,000

2012 on the TTF. Sales on the TTF dropped by 1.8 billion

12,000

m (6%) with respect to 2011.

11,000

The TTFs 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

TTFs 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 TTFs position.

26 | GasTerra Annual report 2012

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

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 m of gas to energy companies and industrial
customers in 2012 4 billion m of which on the TTF a
decrease of 3.9 billion m 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 m higher
than those contracted for 2012 at the end of 2011.

29

Natural Gas
83 billion m3

Road
Vehicles (NL)
6-year
fuel supply

What is the equivalent of the


total volume of natural gas
(83 billion m) supplied by
GasTerra when expressed in
terms of vehicle fuel?

Approximately 14 billion litres


of fuel is used in
the Netherlands annually

The energy content of


83 billion m of natural gas
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 markets 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,

30 | GasTerra Annual report 2012

31

GasTerras 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 m of gas to foreign

mutually acceptable agreement. In 2007, GasTerra

GasTerra procured a total of 83.4 billion m 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 m 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 m).

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 m of gas from the

Energy companies in GasTerras 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 m 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 m 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

GasTerras 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 m 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 m of gas in the period from 2006
up to and including 2012.

32 | GasTerra Annual report 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 Europes future

In 2012, GasTerra procured a total of 10.3 billion m 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 m

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 GasTerras

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 m. 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 m 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 m 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

What is the equivalent of the


total volume of natural gas
(83 billion m) supplied by
GasTerra when expressed
in terms of food?

83 billion m3 of natural gas =


food for 1 billion people

The energy content of


83 billion m of natural gas
is the same as the amount
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 m 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 GasTerras
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

36 | GasTerra Annual report 2012

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). GasTerras 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-

38 | GasTerra Annual report 2012

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. GasTerras virtual storage service

several of the Commissions 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 GasTerras 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. GasTerras 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

What is the equivalent of the


total volume of natural gas
(83 billion m) supplied by
GasTerra when expressed in
terms of human work?

documentation and reporting. The basic premise is that


line management throughout the entire organization is

Risk Management

The energy content of


83 billion m of natural gas
is the same as the amount
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

companys 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

42 | GasTerra Annual report 2012

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

Corporate Social Responsibility

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

GasTerras 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 GasTerras 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 Initiatives

contain renegotiation clauses that allow the contracts

these regulations and their impact on GasTerras

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 contracts 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 GasTerras 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

GasTerras 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.

44 | GasTerra Annual report 2012

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 GasTerras 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

GasTerras role in this respect was limited. According to

achieved if we actually listen to them. This conviction

dialogues because it is believed that the industrys

stakeholders, responsibility for long-term supply security

forms the basis for GasTerras 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 suppliers 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 years 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

GasTerras 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 companys 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 GasTerras 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 GasTerras 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 GasTerras 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

46 | GasTerra Annual report 2012

GasTerras foremost activities for the years ahead cast in

Gas 1

Contributing to natural gas revenues

the light of current and anticipated developments on the

Gas 2

Developing commercially appealing products

Gas 3

Safeguarding customers delivery security in line with


market standards and legislation

Gas 4

Promoting gas as a relevant fuel in the future energy mix

Gas 5

Adhering to external legislation and regulations, as well


as internal codes of conduct and procedures

Green 1

Promoting efficient use of gas

Green 2

Sharing knowledge about making energy supplies more


sustainable and increasing understanding of natural gas
role in the energy transition

Green 3

Promoting sustainable business practices

Groningen 1

Establishing a pre-eminent knowledge centre for energy


supply sustainability in Groningen

Groningen 2

Actively and visibly participating in Groningen society

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.

49

Natural Gas
83 billion m3

Wind Turbines
24.000 turbines

What is the equivalent of the


total volume of natural gas
(83 billion m) supplied by
GasTerra when expressed in
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

The energy content of


83 billion m of natural gas
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

83 billion m3 of natural gas =


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 m 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 m 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

Unies 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 m 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

50 | GasTerra Annual report 2012

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-

HVCs production will be ramped up to over 4 million m.

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 and Education

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 Greenchoices 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 GasTerras

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,

52 | GasTerra Annual report 2012

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 sectors 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.

GasTerras 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 GasTerras

55

Natural Gas
83 billion m3

Solar panels
3100 m2

What is the equivalent of the


total volume of natural gas
(83 billion m) supplied by
GasTerra when expressed in
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


The energy content of
83 billion m of natural gas,
when converted to electricity,
is the same as the amount
of energy generated by
3100 km 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 GasTerras

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 Veenkolonin

million on sponsorship.

portfolio consists of Groningen gas and our office

and Hooghalen.
Sponsorship of the premier division basketball club

83 billion m of natural gas =


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

56 | GasTerra Annual report 2012

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 GasTerras

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 studys 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 GasTerras
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

GasTerras 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 companys image is positive

ship with GasTerra. An unusual form of advertising

GasTerras 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 GasTerras CSR objectives. A prime example is Watt Nu?

58 | GasTerra Annual report 2012

59

Personnel and Organization

Staffing Levels and Composition

Training and Career Development

encouraged to change job and/or department after a set

GasTerras 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

GasTerras 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 Blacquire 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. GasTerras 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

Personnel and Organization

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)

45-49

Staff Recruitment

50-54

Staff recruitment remains limited due to the stability of

55-59

the organizations workforce. Very few employees left

60-65

GasTerras employment due in part to high employee

>65

satisfaction levels (see p. 61). Despite major benefits


0

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 GasTerras HRM policies is to establish a

60 | GasTerra Annual report 2012

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 GasTerras 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 GasTerras 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 GasTerras 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 schemes 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 VPG

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. VPG 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

teams (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

62 | GasTerra Annual report 2012

Codes of Conduct and Procedures

63

year and is intended to make staff more aware of the

REMIT Compliance Procedures

importance and the companys 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

GasTerras employees do business. These standards

audits to ensure compliance with legislation and

Whistleblower Scheme

agreement with the buildings 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 everybodys

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 buildings

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 GasTerras efforts to minimise its

GasTerras main CSR objectives Gas 5 (see p. 47). The

activities do not conflict with the companys 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 GasTerras 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.

64 | GasTerra Annual report 2012

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, GasTerras 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 m 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 GasTerras

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.

66 | GasTerra Jaarverslag 2012

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

in millions of Euros
note

2012 2011

Fixed assets
- tangible fixed assets

(1)

36.6 32.9


Current assets

note

Net turnover

(5)

Cost of sales

(6)

3,437.9 3,512.8

2012 2011

23,381.4 21,095.0

-/-23,366.4 -/-20,991.0

15.0 104.0

Gross profits

(2)

- receivables

Operating expenses

(7)

-/-63.6 -/-60.0

259.2 575.2

- cash and bank


3,733.7 4,120.9

Total

-/-48.6 44.0

Operating profit
Net financial income and expenses

(8)

96.6 4.0

Liabilities

Results on ordinary activities before tax

Shareholders equity

(3)

Current liabilities

(4)

216.0 216.0
3,517.7 3,904.9


Total

3,733.7 4,120.9

Taxation

48.0 48.0
(9)

-/-12.0 -/-12.0


Results after tax

36.0 36.0

70 | GasTerra annual
Jaarverslag
accounts
2012 2012

71

Statement of cash flows

Explanatory notes to the annual accounts

in millions of Euros
Cash flow from operating activities
2012 2011

1 Principles for valuation and determination of


results

Operating profit

-/-48.6 44.0

- depreciation and impairment losses


- movements in receivables

9.4 7.8
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

-/-351.6 895.6

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


-/-266.9 887.6

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


-/-316.0 570.3

and loss account below.

The depreciation periods applied are between five and ten


years.

Cash and bank at year-end

259.2 575.2

Any impairment of assets that is expected to be

Cash and bank at preceding year-end

575.2 4.9

permanent is taken into account.

Movements in cash and bank balance


-/-316.0 570.3

72 | GasTerra annual
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 companys

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, GasTerras 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.

74 | GasTerra annual
Jaarverslag
accounts
2012 2012

75

2 Explanatory notes to the balance sheet

Operating expenses

Statement of cash flows

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 11.7 9.4 28.9
6.3

1.4

7.6

32.9 13.1 9.4 36.6

This item includes the income and expenses related to


financing.

Purchase value

Cumulative depreciation

In millions of Euros
as on 31 Dec. 2012 as on 31 Dec. 2012
Corporation tax

Equipment
64.1 35.1

The amount of corporation tax to be included in the

Assets under construction

profit and loss account is calculated based on the results

Total
71.7 35.1

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

3,351.3 3,167.1

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

86.6 19.8

A deferred tax asset will only be recorded to the extent

Total
3,437.9 3,512.8

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.

76 | GasTerra annual
Jaarverslag
accounts
2012 2012

77

Shareholders equity (3)

Unappropriated profit

Issued capital

In millions of Euros

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

GasTerras policy is to fully hedge the currency risks that

In millions of Euros
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.

78 | GasTerra annual
Jaarverslag
accounts
2012 2012

79

Estimated market

In millions of Euros

value 2012

Book Estimated market


value 2012

value 2011

Book
value 2011

Forward exchange contracts for selling pounds sterling

0.6 0.0

Forward exchange contracts for buying pounds sterling

1.0

Gas price swaps

0.6 0.0

-4.2 0.0

2.2 0.0

-11.9 0.0

0.0

3 Explanatory notes to the profit and loss account

-16.7 0.0
9.0 0.0

Net turnover (5)


In millions of Euros

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 m 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/m (24.2 cents/m 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.

In millions of Euros

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/m (23.4 cents/

During the financial year, 48 billion m natural gas from

term purchase contracts. The financial risks that arise on

payment commitment of approximately 0.5 billion

m 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.

80 | GasTerra annual
Jaarverslag
accounts
2012 2012

81

Operating expenses (7)

Auditors fees

In millions of Euros

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)

2012 2012 2011 2011

Amounts in Euros

KPMG KPMG KPMG KPMG


Accountants N.V.

Other

203,100 25,824

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.

205,632 22,149

Other non-audit related services

In millions of Euros
2012

Other

Audit of the accounts

- 154,800 - 211,015
- - - 216,632 176,949

206,100 236,839

Remuneration of Directors and Supervisory Directors

remuneration policy as regards the companys 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

Employers 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.

82 | GasTerra annual
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.

A.P.N. van Veldhoven

84 | GasTerra Annual
Jaarverslag
report
2012
2012

85

Message from the Board of


Supervisory Directors
Meetings

arisen, confirming that 2012s 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 Managements decisions in compliance with

In response to Mr Blacquires 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 committees 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 companys 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 2011s

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

companys 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

managements assessment of the internal risk

concerning the activities it had undertaken at one of the

management and control systems setup and operation

Board of Supervisory Directorss 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
A.P.N. van Veldhoven

86 | GasTerra Annual
Jaarverslag
report
2012
2012

87

Other information
Independent auditors report

Auditors 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,

Managements responsibility

depend on the auditors 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 companys

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 sub4 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 companys internal control. An audit also includes

To: the Board of Directors of GasTerra B.V.

Groningen, 14 February 2013

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.

88 | GasTerra Annual
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

preceding with the icons

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

preceding with the icons

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

Groningen, 14 February 2013

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

Graphic design
studio Tineke Wieringa,

Visitors address

Haren

Stationsweg 1
9726 AC Groningen

Text contributions

The Netherlands

Castel Communicatie,
Groningen

Department
Communications

Photography

00 31 50 364 88 26

Reyer Boxem

communicatie@gasterra.nl

Laurens van Berkel

www.gasterra.com

Imelda Weel
and others
Production
Lecturis, Eindhoven (printing)
Hexspoor, Boxtel (binding)
Paper
FSC gecertified paper,
CO2 neutral

www.gasterra.com

Appendix 1
Background information on directors and
members of the Board of Supervisory Directors
GasTerras 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
General holder of a power of attorney

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 Essos 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
General holder of a power of attorney

GasTerras Directors
Name

Title/Position Authority

Date of appointment

Gertjan Lankhorst

Chief Executive Officer

1 September 2006

Independently authorised

Maurice de Wilde, RC

Chief Financial Officer

General holder of a power of attorney

15 January 2013

Jacob Kielman

Chief Commercial Officer

General holder of a power of attorney

1 July 2005

Anton Broenink

Chief Operating Officer

General holder of a power of attorney

1 October 2007

2 | GasTerra annual report 2012 | Background information on directors and members of the Board of Supervisory Directors

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.

GasTerras Board of Supervisory Directors


Name Authority

Date of appointment

C.W.M. Dessens

1 January 2006 Eligible for reappointment in 2013

Delegate member

Term of office

D.A. Benschop

Delegate member

1 May 2011 Eligible for reappointment in 2012

J.D. Bokhoven

Delegate member

1 November 2007 Eligible for reappointment in 2015

P. Dekker

Member of the Board of Supervisory Directors

1 July 2005 Eligible for reappointment in 2013

M.E.P. Dierikx

Delegate member

2 July 2011 Eligible for reappointment in 2014

J.C. De Groot

Member of the Board of Supervisory Directors

1 January 2006 Eligible for reappointment in 2012

J.M. Van Roost

Delegate member

1 July 2005 Eligible for reappointment in 2014

A.P.N. van Veldhoven Member of the Board of Supervisory Directors

31 March 2011 Eligible 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 Koks 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)

3 | GasTerra annual report 2012 | Background information on directors and members of the Board of Supervisory Directors

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 EBNs 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 GasTerras Board of Supervisory Directors. Since 1977,
he had held various positions within Shells natural gas organisation, including posts in London and Calgary. In 1997, he returned
to the Netherlands and was responsible for Shells 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 Shells 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 GasTerras 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)

4 | GasTerra annual report 2012 | Background information on directors and members of the Board of Supervisory Directors

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)

A.P.N. van Veldhoven


Alexander van Veldhoven was born on 29 November 1973 in Waalwijk. He is a member of GasTerras 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)

5 | GasTerra annual report 2012 | Background information on directors and members of the Board of Supervisory Directors

Appendix 2
Ancillary positions held by GasTerra directors
and supervisors
Board of Directors
Name Title/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. Stbler

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. Broenink Secretary, 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
Name Title/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 Benschop President-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, Advisory Council for the Clingendael International Energy Programme (CIEP)

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.

2 | GasTerra annual report 2012 | Ancillary positions held by GasTerra directors and supervisors

Name Title/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

Member, Advisory Council for the Clingendael International Energy Programme (CIEP)

Joost Van Roost President-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.

3 | GasTerra annual report 2012 | Ancillary positions held by GasTerra directors and supervisors

Supporting Technical Data for Theme Pages


GasTerra Annual Report 2012

Gas
Gas
Volume (billion m3) 83
Lower Heating Value (LHV) (MJ/m)

31.65

Higher Heating Value (HHV) (MJ/m)

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 MJ kWh
1

0.0041868 0.001163

MJ

238.8 1 0.2778

kWh

859.8 3.6

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

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.

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

83 billion m of natural gas =


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

83 billion m of natural gas =


290.000 km2 of coniferous forest
3

Natural Gas
83 billion m3

Coniferous
Forest
290.000 km2

What is the equivalent of the


total volume of natural gas
(83 billion m) supplied by
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
The energy content of
83 billion m of natural gas
is the same as the amount
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

What is the equivalent of the


total volume of natural gas
(83 billion m) supplied by
GasTerra when expressed in
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)

The energy content of


83 billion m of natural gas
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

What is the equivalent of the total


volume of natural gas
(83 billion m) supplied by
GasTerra when expressed in terms
of food?

83 billion m3 of natural gas =


food for 1 billion people

Consumption
Consumption (kcal/day)

2000

Annual Consumption (per person) (MJ)

3056

Annual Consumption (1 billion people) (MJ)

The energy content of


83 billion m of natural gas
is the same as the amount
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

What is the equivalent of the


total volume of natural gas
(83 billion m) supplied by
GasTerra when expressed in
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)


The energy content of
83 billion m of natural gas
is the same as the amount
of energy generated by
2.2 billion people cycling
non-stop for the duration
of one year.
Approximately 2.2 billion people
cycle non-stop for one year

83 billion m3 of natural gas =


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

What is the equivalent of the


total volume of natural gas
(83 billion m) supplied by
GasTerra when expressed in
terms of wind power?

Power Output (MW)


Load Factor (%)
Annual Output (MWh)
Output (24,000 wind turbines) (MWh)

The energy content of


83 billion m of natural gas
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

83 billion m3 of natural gas =


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

What is the equivalent of the


total volume of natural gas
(83 billion m) supplied by
GasTerra when expressed in
terms of solar panels?

Power Output (kW)


Efficiency (%)

1
14%

Surface Area (m2) 7.14

The energy content of


83 billion m of natural gas,
when converted to electricity,
is the same as the amount of
energy generated by 3100
km of solar panels.

Annual Output (NL) (kWh)

850

Surface Area Output (NL) (kWh/m)

119

Output (3,100 km of solar panels) (kWh)

This is an area approximately


comparable to the size of the
Province of South Holland.

83 billion m3 of natural gas =


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 NVNederlandseGasunie 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 BVs authorised share capital is 180million 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%), EBNBV (40%), ShellNederlandB.V. (25%) and EssoNederlandB.V. (25%). Consequently, fifty percent of shares are indirectly
publicly owned, i.e. state-owned, and fifty percent 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 companys board of directors. In GasTerras 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, GasTerras 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.
GasTerras 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 GasTerras general affairs, and assists the board of
directors in a close advisory capacity.

Appendix 5
GRI Table for publication in sustainability report

Profile Description

Reported
Page Reason for Omission/Partial
(fully/partially/omitted) Reporting

Strategy and Analysis


1.1

Statement from the most senior decision-maker of the

Fully

Annual Report: CEOs Message, p. 7-9

Fully

Annual Report: CEOs 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 organisations 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

Profile Description

Reported
Page Reason for Omission/Partial
(fully/partially/omitted) Reporting

2.6

Nature of ownership and legal form.

Fully

Appendix4: 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. 2730
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: GasTerraBV, p. 90

or its contents.
3.5

Process for defining report content.

Fully

3.6

Boundary of the report.

Omitted

Annual Report: Corporate Social Responsibility, p. 43,44


Annual Report: Stakeholder Dialogue, p. 45-47
Boundary set for GasTerra
wherever the term GasTerra is
used refers to GasTerraBV.

3.7

State any specific limitations on the scope

Fully

3.8

Basis for reporting on joint ventures, subsidiaries,

Annual Report: Corporate Social Responsibility, p. 43,44


Annual Report: Stakeholder Dialogue, p. 45-47

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.

Profile Description

3.9

Data measurement techniques and the bases of

Reported
Page Reason for Omission/Partial
(fully/partially/omitted) Reporting

Omitted

This section does not apply to

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

Appendix5: 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 Auditors 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

Annual Report: Management Information, p. 10-13

committees under the highest governance body

Appendix1: 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

Annual Report: Management Information, p. 10-13

body is also an executive officer and if so, state his/her

Appendix1: Member Backgrounds (Board of Management

position within the context of the organisation and the

and Board of Supervisory Directors)

reasons for this situation.


4.3

For organisations that have a unitary board structure,

Fully

Annual Report: Management Information, p. 10-13

state the number of members of the highest governance

Appendix1: Member Backgrounds (Board of Management

body that are independent and/or non-executive

and Board of Supervisory Directors)

members.

Profile Description

4.4

Mechanisms for shareholders and employees to

Reported
Page Reason for Omission/Partial
(fully/partially/omitted) Reporting

Fully

Annual Report: Management Information, p. 10-13

provide recommendations or direction to the

Annual Report: Personnel and Organisation, p. 58-61

highest governance body.

Appendix1: Member Backgrounds (Board of Management


and Board of Supervisory Directors)
Appendix4: Governance

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 organisations 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

This indicator has not been

expertise of the members of the highest governance

reported.

body in terms of the organisations strategy relating


to economic, environmental and social topics.
4.8

Internally developed statements of mission or

Fully

Annual Report: Mission, Vision and Strategy, p. 2,3

values, codes of conduct and principles relevant to

Annual Report: Codes of Conduct and Procedures,

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 organisations analysis and

Supervisory Directors, p. 84,85

management of economic, environmental and social

Appendix4: Governance

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

bodys 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


Appendix4: Governance

Omitted

This indicator has not been


reported.

Profile Description

4.12

Externally developed economic, environmental and

Reported
Page Reason for Omission/Partial
(fully/partially/omitted) Reporting

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
Appendix7: Knowledge, Education and Innovation Projects

4.14

List of stakeholder groups engaged by the organisation.

Fully

Annual Report: Stakeholder Dialogue, p. 45-47

4.15

Basis for identification and selection of stakeholders

Fully

Annual Report: Stakeholder Dialogue, p. 45-47

Fully

Annual Report: Stakeholder Dialogue, p. 45-47

Fully

Annual Report: Stakeholder Dialogue, p. 45-47

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.

Profile Description

Reported
Page Reason for Omission/Partial
(fully/partially/omitted) Reporting

Economic
EC1

Direct economic value generated and distributed,

Partially

Annual Report: Outline in Figures, p. 17

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

This indicator has not been

Omitted

for the organisations activities due to climate change.


EC3

Coverage of the organisations defined benefit plan

reported.
Fully

Annual Report: Personnel and Organisation, p. 60

obligations.
EC4

Significant financial assistance received from government. Omitted

This section does not apply to


GasTerra.

EC5

Range of ratios of standard entry level wage by

This indicator has not been

Omitted

gender, compared to local minimum wage at

reported.

significant locations of operation.


EC6

Policy, practices and proportion of spending on

This indicator has not been

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

Annual Report: Personnel and Organisation, p. 59,60

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

This indicator has not been


reported.

commercial, in-kind or pro bono engagement.


EC9

Understanding and describing significant indirect


economic impact, including the extent of impact.

Omitted

This indicator has not been


reported.

Profile Description

Reported
Page Reason for Omission/Partial
(fully/partially/omitted) Reporting

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

This indicator has not been

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

This indicator has not been

source.
EN5

Energy saved due to conservation

reported.
Omitted

This indicator has not been

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.

This indicator has not been


reported.

Omitted

This indicator is not relevant to


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.

This indicator is not relevant to


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.

Profile Description

EN11

Reported
Page Reason for Omission/Partial
(fully/partially/omitted) Reporting

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

These indicators have not


been reported.

of high biodiversity value outside protected areas.


EN13

Habitats protected or restored.

Omitted

These indicators have not


been reported.

EN14

Strategies, current actions and future plans for

Omitted

managing impact on biodiversity.


EN15

Number of IUCN Red List species and national

These indicators have not


been reported.

Omitted

conservation list species with habitats in areas affected

These indicators have not


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.

This indicator has not been


reported.

Omitted

and any reductions achieved.


EN19

This indicator has not been

This indicator has not been


reported.

Omitted

These indicators have not


been reported.

EN20

NOx, SOx and other significant air emissions by

Omitted

type and weight.


EN21

Total water discharge by quality and destination.

These indicators have not


been reported.

Omitted

These indicators have not


been reported.

EN22

Total weight of waste by type and disposal method.

Omitted

These indicators have not


been reported.

EN23

Total number and volume of significant spills.

Omitted

EN24

Weight of transported, imported, exported or treated

Omitted

These indicators have not


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.

These indicators have not


been reported.

Profile Description

EN25

Identity, size, protected status and biodiversity value of

Reported
Page Reason for Omission/Partial
(fully/partially/omitted) Reporting

Omitted

These indicators have not

water bodies and related habitats significantly affected

been reported.

by the reporting organisations discharge of water and


runoff.
EN26

Initiatives to mitigate environmental impact of products

Fully

and services and extent of impact mitigation.

Annual Report: Corporate Social Responsibility, p. 43,44


Annual Report: Stakeholder Dialogue, p. 45-47
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
Appendix7: Knowledge, Education and Innovation Projects

EN27

Percentage of products sold and their packaging

Omitted

These indicators have not

materials that are reclaimed by category.


EN28

Monetary value of significant fines and total number

been reported.
Omitted

These indicators have not

of non-monetary sanctions for non-compliance with

been reported.

environmental laws and regulations.


EN29

Significant environmental impact of transporting

Omitted

These indicators have not

products and other goods and materials used for the

been reported.

organisations operations and transporting members


of the workforce.
EN30

Total environmental protection expenditures

Omitted

These indicators have not

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

Annual Report: Outline in Figures, p. 17


Annual Report: Personnel and Organisation, p. 58-60

Fully

Annual Report: Personnel and Organisation, p. 58-60

employee turnover by age group, gender and region.


LA3

Benefits provided to full-time employees that are not

Omitted

This indicator has not been

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

Profile Description

LA5

Minimum notice period(s) regarding significant

Reported
Page Reason for Omission/Partial
(fully/partially/omitted) Reporting

This indicator has not been

Omitted

operational changes, including whether it is specified

reported.

in collective agreements.
LA6

Percentage of total workforce represented in formal

Omitted

This indicator has not been

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

Annual Report: Outline in Figures, p. 17


Annual Report: Personnel and Organisation, p. 60,61

region and by gender


LA8

Education, training, counselling, prevention and

Omitted

This indicator has not been

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

This indicator has not been

agreements with trade unions.


LA10
LA11

Average hours of training per year per employee

reported.
Omitted

This indicator has not been

by gender and by employee category.

reported.

Programmes for skills management and lifelong learning Omitted

This indicator has not been

that support the continued employability of employees

reported.

and assist them in managing career endings.


LA12

Percentage of employees receiving regular performance

Omitted

This indicator has not been

and career development reviews, by gender


LA13

Composition of governance bodies and break-down of

reported.
Fully

Annual Report: Personnel and Organisation, p. 58-60

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

This indicator has not been


reported.

Profile Description

Reported
Page Reason for Omission/Partial
(fully/partially/omitted) Reporting

Social: Human Rights


HR1

Percentage and total number of significant investment

Omitted

agreements and contracts that include clauses incorpo-

This indicator has not been


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

This indicator has not been


reported.

rights screening and actions taken.


HR3

Total hours of employee training on policies and

Omitted

procedures concerning aspects of human rights that

This indicator has not been


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

This indicator has not been


reported.

Omitted

the right to exercise freedom of association and collective

This indicator has not been


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

This indicator has not been


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

This indicator has not been


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

This indicator has not been


reported.

organisations 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

This indicator has not been


reported.

Profile Description

Reported
Page Reason for Omission/Partial
(fully/partially/omitted) Reporting

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


Appendix8: 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 organisations

been reported.
Fully

anti-corruption policies and procedures.

Annual Report: Codes of Conduct 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: Mission, Vision and Strategy, p. 2,3


Annual Report: CEOs 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

This indicator has not


been reported.

by country.
SO7

Total number of legal actions for anti-competitive

This indicator has not

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

This indicator has not


been reported.

Profile Description

Reported
Page Reason for Omission/Partial
(fully/partially/omitted) Reporting

Social Product Responsibility


PR1

Life cycle stages in which health and safety impact of

Omitted

products and services are assessed for improvement

This indicator has not


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

This indicator has not


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

This indicator has not


been reported.

services subject to such information requirements.


PR4

Total number of incidents of non-compliance with

Omitted

regulations and voluntary codes concerning product and

This indicator has not


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

This indicator has not


been reported.

Omitted

voluntary codes related to marketing communications,

This indicator has not


been reported.

including advertising, promotion and sponsorship.


PR7

Total number of incidents of non-compliance with

Omitted

regulations and voluntary codes concerning marketing

This indicator has not


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

This indicator has not


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

This indicator has not


been reported.

Appendix6
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 greengas 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. NTA8080 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 NLAgency 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 facilitys 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. NTA8080 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 theyre 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
earths 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 GasTerras own Raad van Kinderen
(Board of Children). The classes involved are the final year at the DeKrommeAkers primary school in Garnwerd and the special
class for gifted children at Schoolbestuur Lauwers&Eems, a school collective in NorthGroningen. 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.

2 | GasTerra annual report 2012 | Overview of knowledge, education and innovation projects

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 projects 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 GasTerras 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

3 | GasTerra annual report 2012 | Overview of knowledge, education and innovation projects

Green Dream District


GasTerra is once again sponsoring the Green Dream District childrens 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

4 | GasTerra annual report 2012 | Overview of knowledge, education and innovation projects

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 Veenkolonin 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 GasTerras 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.

5 | GasTerra annual report 2012 | Overview of knowledge, education and innovation projects

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. Gazproms 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.

6 | GasTerra annual report 2012 | Overview of knowledge, education and innovation projects

Appendix 8
Summary of Sponsorship and Donations 2012
Sponsorship
NAME/ORGANIzATION SUBJECT

Diamond sponsorship NRG Battle 2012 Sponsorship of Energy Battle 2012


Energy Delta Convention Energy Delta Convention 2012
Eurosonic Noorderslag (Grunnsonic) Eurosonic/Noorderslag Groningen music event
Eurovoetbal Eurovoetbal - 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 Intl. Basketball Tournament

Magneet School sponsorship, bus


Missing Chapter Foundation

Board of Children

NNO

Bommen Berend concert, 28 August 2012

Oranjevereniging Groningen Performance by Noord Nederlands orchestra


Pinksterfeesten Delfzijl Pinksterfeesten Delfzijl (Whitsun festival)
Prins Claus Conservatorium Prins Claus Conservatory
Scholtenhuis

War monument, Groningen

SPDC RusPrix 2012


Swingin Groningen Swinging Groningen 2012 + award
Topsport Steunpunt Noord

Topsport Steunpunt Noord

VNO NCW Noord Networking evening


Topsport Noord Nederland Streetball
Torenwachter Performance at Martini Tower, summer 2012
Vereniging Volksvermaken Groningen NNO concert, 28 August 2012
Schaakclub Groningen

Chess club + youth tournament

Stadspark Open

Golf tournament, Stadspark 2012

Voetbalvereniging De Held

Youth football tournament, 2012

Voorwaarts, Voorwaarts Sponsorship of boat, Groningen

1 | GasTerra annual report 2012 | sponsorship and donations

Appendix 8
Summary of Sponsorship and Donations 2012
Donations
NAME/ORGANIzATION SUBJECT

Wildervank monument and concert committee

Contribution to expansion of church organ for cultural events

Heerentocht, Engelbert Spin 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 Duchennes 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, Im 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

Humanitas Language 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 Valley Sponsorship of Hoogkerk cycle race


Junior Kamer Groningen Organisation of Duckrace for the Beatrix childrens hospital in
Groningen
NOM Participation in Route Development Fund (Groningen Airport
Eelde)
Basisschool Garnwerd

Contribution to childrens charity walk to raise money for solar

panels at schools (via childrens consultative council)

UMCG Sponsorship of PhD Day at University of Groningen


Visitors of Zorgcentrum Groningen activity centre Expression of thanks to volunteer cooks for their efforts in

organising Christmas dinner

Hartstichting

Contribution to colouring and handicrafts book (Project Kind &

Ziekenhuis)

2 | GasTerra annual report 2012 | sponsorship and donations

NAME/ORGANIzATION SUBJECT

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

3 | GasTerra annual report 2012 | sponsorship and donations

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 organizations 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.

2 | GasTerra annual report 2012 | glossary

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 GasTerras activities or conversely organizations that may themselves
affect GasTerras 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 1.95billionm.

Within Day
A product offered at virtual natural gas trading points.

3 | GasTerra annual report 2012 | glossary

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