EDF and EnBW secure usage rights for underground gas caverns

Karlsruhe. EDF SA and EnBW Energie Baden-Württemberg AG have fully concluded the negotiations started in 2006 with IVG Immobilien AG and signed agreements, which give both energy companies long-term usage rights for storing gas in underground salt caverns in the region of Etzel. IVG Immobilien AG is one of the largest listed real estate companies in Europe and, through its division IVG Kavernen (IVG Caverns), is one of the leading marketers of undergrounds caverns for storing gas and oil. The salt caverns are located in Etzel, have a total usable storage volume of about 360 million m3 and should be commissioned by 2011. The contract gives EDF and EnBW the additional option of more salt caverns. Increasing storage capacity is part of both energy companies' gas strategy.

For EnBW, this contract is an important step in the establishment of a flexible gas procurement portfolio. “To ensure that we are able to act independently and flexibly in the European gas market in the future, it is absolutely essential that we have our own and thus secure storage capacity. By acting today, we are making sure that we will be able to continue meeting our customers’ energy needs in the future,” said Pierre Lederer, Chief Operating Officer of EnBW.

In order to be able to consistently tap into potential growth in the gas business in the future, EDF and EnBW want to take advantage of synergies within the EDF Group and also work together on the planning, construction and operation of a gas plant in the salt caverns located in Etzel. The actions taken by EDF and EnBW are aimed at increasing security of supply and, by connecting the gas reservoirs to the Dutch gas transport network, are also increasing competition in the European gas market. To this end, EDF and EnBW have already joined a consortium that is planning a 56 km pipeline to connect the reservoirs in Etzel.

The EDF Group, one of the leaders in the energy market in Europe, is an energy specialist that is active in all the businesses of electricity: production, transport, distribution, energy supply and trading. The Group is the leading electricity producer in Europe. In France, it has mainly nuclear and hydraulic production facilities where 95% of the electricity output involves no CO2 emissions. EDF operates over 1,200,000 km of low and medium voltage overhead and underground electricity lines and around 100,000 km of high and very high voltage networks. The Group is involved in supplying energy and services to close to 40 million customers around the world, including more than 28 million in France. The Group generated consolidated sales of € 58.9 billion in 2006, of which 42 % in Europe excluding France. Net income (Group share) stood at € 5.6 billion, with net income from ordinary operations at € 4.2 billion. EDF is listed on the Paris Stock Exchange and is a member of the CAC 40 index.

With some six million customers, EnBW Energie Baden-Württemberg AG with its headquarters in Karlsruhe is the third largest energy supply company in Germany. In 2006, EnBW generated annual revenue in excess of € 13 billion with more than 21,000 employees as of December 31, 2006. EnBW core activities focus on the segments electricity, gas as well as energy and environmental services.