Eesti Gaas sales grew 22 percent due to the low price of natural gas

Eesti Gaas sold 22 percent more natural gas in the first six months of 2016 compared to the same period last year. The factors were a cold January, low price of natural gas and the company’s flexible price policy.

From January to June of 2016 Eesti Gaas sold 279 million m3 of natural gas, compared to 228 million m3  during the same period last year. The growth is remarkable, since overall gas consumption grew 8 percent to 300 million m3.

According to Eesti Gaas Executive Director Ants Noot this growth reflects the market situation, in which the low price of oil puts gas consumers at a clear advantage. In addition, clients have reacted positively to the changes in Eesti Gaas prices.

“In the beginning of the year we switched to flexible prices to offer our clients a better service more in accordance with their needs. Feedback has been positive,” Noot said. “Natural gas is the most favourable energy source, the costs of which compared to electric or oil based heating are up to three times lower. Heat pumps need additional electic heating in very cold weather so they have a hidden extra cost. This is not the case with gas boilers. Natural gas is a very reasonable choice.”

Noot added, that as an enterprise based on Estonian capital Eesti Gaas strives to offer more choices to the consumer and increase competition on the changing energy market. He says that extra attention is now paid to electricity sales and sales of gas for the transport sector and other possibilities on the energy market, utilizing the longtime experience of Eesti Gaas in the energy sector and also the majority stockholder Infortar in other sectors.

Sales of compressed natural gas (CNG) for automotive transportation grew 41 percent compared to last year, showing strong consumer interest in this service. Electricity sales grew 15 percent due to aggressive sales.

“Fluctuations of the oil price and raised excise tax has resulted in a situation where CNG is two times cheaper than gasolene. Used as a car fuel CNG is clearly cheaper and also cleaner,” Noot said. “More and more cars running on CNG are sold, so we are gradually extending our network of refuelling stations.”

AS Eesti Gaas sells electricity and natural gas and employs 200 people. The group consists of AS EG Ehitus, specialized on planning and building gas pipelines and other gas related installations, and natural gas distributor AS Gaasivõrgud. The company has five natural gas refuelling stations in Estonia.

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