E.ON Ruhrgas Sees No Quick End To Gas Surplus Supply

E.ON Ruhrgas Sees No Quick End To Gas Surplus Supply
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Τρι, 7 Δεκεμβρίου 2010 - 18:39
E.ON Ruhrgas, the gas unit of German utility E.ON AG (EOAN.XE), said Tuesday it doesn't expect a quick end to the surplus supply situation on the market for natural gas.
E.ON Ruhrgas, the gas unit of German utility E.ON AG (EOAN.XE), said Tuesday it doesn't expect a quick end to the surplus supply situation on the market for natural gas.

"That will persist for a couple of years," Klaus Schaefer, the chief executive of E.ON Ruhrgas told journalists.

The highest point of the current surplus supply will be passed "in a few years", he said. After that, the situation will ease.

The price of gas has come under pressure, as demand fell during the economic crisis.

Additional supplies of liquefied natural gas and unconventional gas resources are also preventing a recovery of prices.

This is a problem in particular for companies with long-term supply contracts such as Ruhrgas.

The E.ON subsidiary is currently working on amending these contracts.

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