Oil majors in transition: Shell to bid for Dutch Utility Eneco

By |2019-05-20T13:03:29+01:00Tuesday, 15 January 2019|Categories: Netherlands, oil industry, utilities|Tags: , , |0 Comments

Oil & Gas Major Royal Dutch Shell and Dutch pension fund PGGM formed a consortium to take over Dutch utility Eneco.

Eneco

Eneco is owned by 53 Dutch municipalities. In a turbulent political process they have decided to sell the company a few months ago. The company value is estimated in the region of €3bn. 

Total turnover in 2017 was €3.4bn. Although more known for its renewable investments, Eneco still generates half of its power (10.3 TWh p.a. in 2017) by fossil fuels, mainly gas. 

Eneco also has a large trading division focused on gas trading (45.3 TWh) and power trading (21.5 TWh).

Shell

The Dutch/British gas and oil giant recently declared to invest $1-2bn per year in its New Energies division, established in 2016. This corresponds to 4-8% of its total investment of around $25bn. 

Its European peers (in contrast to its US peers) pursue similar strategies: BP, Total, ENI and Equinor have pledged around $0.5 bn per year for renewables. ENI plans to increase renewable investments from 0.5 to 1.2bn over the next years. And Equinor even announced […]