EdF moves into gas trading business
State-owned utility Electricite de France (EdF) is now moving into the gas trading business. EdF Trading, a joint
venture held 89 % by EdF and 11 % by independent energy group Louis Dreyfus, had taken two major gas contracts.
In April, EdF Trading had taken over responsibility from British group BG International for an agreement to supply 2
bn cm of gas to German group Wingas, it said. BG International said at the time it had agreed to supply gas to EdF
Trading and to pay $ 188 mm in order to conclude the deal.
Only a few weeks earlier, German energy group EnBW, in which EdF has a 34.5 % stake, secured two gas sales contracts
in northern Germany. While the two sales were not connected, "they both fit in with an EdF group strategy in European
gas trading, which could perhaps be a prelude to a deeper involvement in the gas industry".
The strategy could turn out to be lucrative if EdF and its allies end up controlling the energy business of Italian
conglomerate Montedison. EdF said it had acquired 20 % of Montedison, unleashing an angry reaction in Italy. This
month, EdF said it had a deal with Deutsche Bank allowing it to raise the stake by 3.14 percentage points.
France is accused of protecting its state energy industry while taking advantage of liberalised markets elsewhere.
EdF's move into gas trading could also be significant in view of its expected interest in any future privatisation of
state-owned gas utility Gaz de France.
