Market functionalitites

Various parties are involved in selling and transporting the natural gas from the source to the end user. Natural gas in Denmark comes primarily from the North Sea fields through a 200 km subsea pipeline. The gas comes ashore at the beach terminal in Nybro where it is treated before it is injected into the transmission network.

Transmission grid

The transmission network (the gas network motorway) in Denmark is owned and operated by Energinet.dk. The transmission network is the main pipeline system that transmits the gas out to the 4 distribution companies in Denmark. Energinet.dk is responsible for transporting the gas, managing emergency situations and for balancing of the Danish gas system. The pressure in the transmission network is up to 80 bars. Measurement and Regulator Stations (M/R stations) serve as a transition point for the distribution system where pressure is reduced  to 50, 40 or 19 bar. This is also where the odorant (the smell) is added.

Distribution Companies

The distribution companies in Denmark are, DONG Gas Distribution, HMN, Natural Gas Distribution Fyn and Aalborg Municipality Gas. They own and operate the distribution systems (gas network highways) in each of their distribution areas. The distribution system transfers gas at a pressure of up to 7 bar to the individual customer sites.

Storage Companies

There are two gas storage facilities in Denmark: one in Stenlille on Zealand owned and operated by DONG Storage and one in Lille Torup in North Jutland owned and operated by Energinet.dk. The gas storage facilities’ primary function is to adjust for demand fluctuations between summer and winter.

Commercial users

There are three types of users of the transmission and storage systems: shippers, gas suppliers and storage customers.

Shippers

Shippers are commercial players transporting gas in the transmission network. They buy transportation rights at Energinet.dk in order to deliver gas to gassuppliers in distribution systems. Shippers receive gas from upstream producers or other shippers. Shippers are responsible for balancing the gas they deliver into and out of the transmission network.

Gas Suppliers

Gas suppliers are responsible for the sales and delivery of gas to end consumers. Some gas suppliers have “universal” service obligations to the consumer. That means they are obliged by law to supply consumers in certain areas. A gas supplier must enter into a Gas Supply Agreement with one or more  distribution companies in order to deliver gas to consumers.

Storage Customers

Storage customers hold gas positions in one or more underground storage facilities. Storage customers have the option to buy and sell gas to a shipper in the transmission network. Otherwise gas can be transferred to another storage customer in the same storage facility.

Consumers

Consumers buy and use natural gas for domestic consumption. There are two kinds of consumers:

Daily metered consumers

Daily metered consumers are companies with remotely read meters which typically consumes more than 300,000 m3 of natural gas per year.

Non-daily metered consumers

Are all ordinary households and small companies with an annual gas offtake of less than  300,000 m3 per year. Their consumption is read every month or every year.