Transitioning to a low-carbon economy

To cover the world’s growing demand for energy, natural gas has become an important energy source in many countries. As an alternative to coal, the use of natural gas is a way of reducing greenhouse emissions. In this context, Axpo Iberia has, in recent times, developed into one of the most important marketers of gas on the Iberian Peninsula – and the fastest growing.

When it comes to demonstrating the ongoing transition from coal to natural gas, Axpo Iberia is certainly an interesting showcase: To date, Axpo’s subsidiary in the Spanish market is ranked in seventh position among gas marketing companies in Spain. Just behind the incumbents, Axpo Iberia is one of the forerunners of new marketing companies promoting free competition and transparency in the Spanish gas sector.

On-going market share increases

In fact, Axpo has surpassed a 5% market share in the Spanish gas market, with a 9,2% share in industrials, and a year-on-year change of +2.41% compared to the same quarter in 2019. Axpo is thus positioned as the marketer with the highest growth rate in this segment in recent years.

Within the supply of natural gas, Axpo Iberia offers advantageous options both in terms of the type of offer and the duration of the contract. Its LNG (Liquefied Natural Gas) unit offers crucial support for quick adaptation within evolving markets.

A green gas contract option

As an expansion of its catalogue of 100% green energy solutions, Axpo Iberia now offers an option for large companies to select a green gas contract. At the beginning of the year, Axpo Iberia became the first and only certified commercial biomethane gas trader in Spain. The recently built biomethane gas plant at the Spanish cow farm Torre Santamaría demonstrates how a farm can meet almost its entire energy consumption by transforming cowpats into clean energy.

Ignacio Soneira, Managing Director of Axpo Iberia, states, "We clearly see gas playing an important role as the world transitions towards a lower carbon economy. It is a tremendous challenge for us to offer our clients sustainable alternatives to conventional fuels, such as coal, and our work reinforces our commitment to renewable energies in a circular economy. In this context, natural gas, LNG and green gas play a decisive role.”

Natural gas and LNG demand on the rise

The trend is true beyond Spain too. On a global scale, there is a strong demand for energy in general, and in particular for natural gas and LNG. Because of a desire to reduce energy generation from coal, many countries are set to see growth in the use of gas and LNG in the coming years. Gas induces around 50% less greenhouse emissions than coal and is therefore a cleaner energy source.

To meet the world’s growing demand for gas in general, and LNG in particular, Axpo aims to further strengthen its position in this substantial growth market, and has therefore expanded its international business areas dealing with natural gas.

Axpo has been active in the LNG business for more than 10 years, continuously developing its capabilities and growing its market share substantially. In this context, the company recently announced the opening of a Singapore office to serve the Asian markets, and also established an LPG trading desk in Switzerland to commence trading the natural gas by-products; propane, butane and isobutane.