The fuel will be delivered at the entry point of Waidhaus on the border with the Czech Republic from the fourth quarter of 2007 until 2010. Iberdrola said that it initially plans to use the gas in trading operations in Germany and neighboring countries.
According to Iberdrola, the gas contract award is a strategic fit with the company’s interest in the German market. Indeed, the utility has recently started proceedings for the forthcoming construction of two gas-fired combined cycle power plants in Germany.
The plants, with a combined capacity of 2,000MW, are located in Ludwigsau, Hessen, and Lauchhammer, Brandenburg, and are to go on-stream in 2010-2011, Iberdrola said.
The company commented that its entry into the German gas market would significantly enhance its presence in the European gas sector. In its domestic market, Iberdrola is currently the second largest gas supplier and the principal developer of gas infrastructures.
In addition, as a result of its recent acquisition of ScottishPower, Iberdrola holds a 9% share of the UK gas market. The company also has experience in the French gas sector through its 2004 acquisition of 330,000MWh in an auction held by Gaz du Sudouest.
