{"id":14121,"date":"2024-08-06T12:00:41","date_gmt":"2024-08-06T11:00:41","guid":{"rendered":"https:\/\/www.nortegas.es\/annual-report-2023\/"},"modified":"2024-09-18T11:54:27","modified_gmt":"2024-09-18T10:54:27","slug":"annual-report-2023","status":"publish","type":"page","link":"https:\/\/www.nortegas.es\/en\/annual-report-2023\/","title":{"rendered":"Annual Report 2023"},"content":{"rendered":"
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Digital Annual Report 2023
Overview<\/em><\/h1>\n

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Letter from the Chairman,
I\u00f1aki Alzaga <\/h2>\n

\n \u201cWe continue to transform challenges into opportunities to lead the transition to a more sustainable and efficient energy system.\u201d<\/em>
\n \u201cGas infrastructures are not only fundamental for the energy present, but also essential building blocks for a sustainable future.\u201d<\/em>
\n \u201cOur distribution network not only ensures continuity of supply today, it also paves the way for a renewable energy future.\u201d<\/em>
\n \u201cOur strategic pillars are guiding us towards a comprehensive and sustained transformation of the energy sector.\u201d<\/em>
\n \u201cAt Nortegas, we integrate sustainability into all our decisions, thus ensuring the creation of a positive and lasting legacy.\u201d<\/em>\n <\/p>\n<\/div>\n

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Letter from the CEO,
Javier Contreras <\/h2>\n

\u201c2023 has been a year marked by volatile gas prices and extreme weather conditions, but also by significant progress on realistic solutions and regulation.&rdquo<\/em>

\n\u201cThe impact on our environment of the high volatility in energy prices resulting from the recent geopolitical conflicts has had a direct effect on industrial demand for natural gas, with significant reductions in distributed volumes that began to occur in 2022 and have continued this year.\u201d<\/em>
\n\u201cDespite this, natural gas has maintained its position as an essential energy source for families in Spain, offering an affordable and comfortable alternative that continues to decarbonise. This context has highlighted the strategic importance of natural gas and the country\u2019s gas system as a reliable, resilient and sustainable energy resource.\u201d<\/em>
\n\u201cIn the face of these challenges, the regulatory development towards the recognition of renewable gases as essential vectors in the energy transition has supported the direction that Nortegas has been leading in the sector.<\/em>
\n\u201cThanks to the continued confidence of our shareholders and the clear focus of our corporate strategy, we are confident that the coming years will be fundamental to strengthening our sustainable project and continuing to provide value to our customers and society in general.\u201d<\/em> <\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n

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Key figures<\/h1>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n
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Economic figures 2023<\/h2>\n<\/div>\n<\/div>\n
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Ordinary income
\n (Distribution Business)<\/span>\n <\/div>\n
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0<\/div>\n<\/div>\n
million euros<\/div>\n<\/div>\n<\/div>\n
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Investment realised
\n (Distribution Business)<\/span>\n <\/div>\n
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22.6<\/div>\n<\/div>\n
million euros<\/div>\n<\/div>\n<\/div>\n
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EBITDA <\/div>\n
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0<\/div>\n<\/div>\n
million euros<\/div>\n<\/div>\n<\/div>\n<\/div>\n
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National
market share <\/div>\n
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0<\/div>\n<\/div>\n
%<\/div>\n<\/div>\n<\/div>\n
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Investment in new businesses
\n (Biomethane and hydrogen)<\/span>\n <\/div>\n
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0<\/div>\n<\/div>\n
million euros<\/div>\n<\/div>\n<\/div>\n
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Credit rating
\n (S&P)<\/span>\n <\/div>\n
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BBB-<\/div>\n<\/div>\n
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Technical figures 2023<\/h2>\n<\/div>\n
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Supply points<\/div>\n
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1,069,494<\/div>\n<\/div>\n
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Distributed energy<\/div>\n
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22.9<\/div>\n<\/div>\n
TWh<\/div>\n<\/div>\n<\/div>\n
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Network length<\/div>\n
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8,509<\/div>\n<\/div>\n
km<\/div>\n<\/div>\n<\/div>\n
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Natural gas network<\/div>\n
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8,013<\/div>\n<\/div>\n
km<\/div>\n<\/div>\n<\/div>\n
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LPG gas network<\/div>\n
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496<\/div>\n<\/div>\n
km<\/div>\n<\/div>\n<\/div>\n
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H 2<\/sub>green projects in development <\/div>\n
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>4<\/div>\n<\/div>\n<\/div>\n<\/div>\n
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Biomethane projects in development<\/div>\n
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>40<\/div>\n<\/div>\n<\/div>\n<\/div>\n
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Customer satisfaction
(0-10) <\/div>\n
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8.0<\/div>\n<\/div>\n<\/div>\n<\/div>\n
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Decrease in the number of emergency calls<\/div>\n
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6.8<\/div>\n<\/div>\n
%<\/div>\n<\/div>\n<\/div>\n
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TCR Inex<\/div>\n
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1.84<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
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Social figures 2023<\/h2>\n<\/div>\n<\/div>\n
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Workforce<\/div>\n
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252<\/div>\n<\/div>\n
Professionals<\/div>\n<\/div>\n<\/div>\n
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Women in positions of responsibility<\/div>\n
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37<\/div>\n<\/div>\n
%<\/div>\n<\/div>\n<\/div>\n
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Permanent contracts<\/div>\n
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100<\/div>\n<\/div>\n
%<\/div>\n<\/div>\n<\/div>\n
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Equivalent percentage of employees with disabilities<\/div>\n
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7.5<\/div>\n<\/div>\n
%<\/div>\n<\/div>\n<\/div>\n
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Safety Frequency rate
\n (own employees and contractors)<\/span>\n <\/div>\n
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0<\/div>\n<\/div>\n<\/div>\n<\/div>\n
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Training per employee<\/div>\n
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30<\/div>\n
hours<\/div>\n<\/div>\n<\/div>\n<\/div>\n
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Training expenditure per employee<\/div>\n
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501<\/div>\n
Euros<\/div>\n<\/div>\n<\/div>\n<\/div>\n
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Social impact programmes<\/div>\n
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256.5<\/div>\n
hours spent<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
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Environmental figures 2023<\/h2>\n<\/div>\n
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Emissions
SCOPE 1 <\/div>\n
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0<\/div>\n<\/div>\n
tCO e 2<\/sub>\n <\/div>\n<\/div>\n<\/div>\n
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Emissions
SCOPE 2 <\/div>\n
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0.5<\/div>\n<\/div>\n
tCO e 2<\/sub>\n <\/div>\n<\/div>\n<\/div>\n
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Total emissions
\n (scopes 1, 2 and 3)<\/span>\n <\/div>\n
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0<\/div>\n<\/div>\n
tCO e 2<\/sub>\n <\/div>\n<\/div>\n<\/div>\n<\/div>\n
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Energy consumption<\/div>\n
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0<\/div>\n<\/div>\n
MWh<\/div>\n<\/div>\n<\/div>\n
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Water consumption<\/div>\n
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2,077<\/div>\n<\/div>\n
m 3<\/sup>\n <\/div>\n<\/div>\n<\/div>\n<\/div>\n
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Waste generated <\/div>\n
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0<\/div>\n<\/div>\n
tonnes<\/div>\n<\/div>\n<\/div>\n
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Recovered waste<\/div>\n
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100<\/div>\n<\/div>\n
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Market environment<\/h1>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n
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\n Nortegas\u2019 environment during 2023 has been characterised by four trends that have influenced the company\u2019s evolution and strategy.<\/strong>\n <\/p>\n<\/div>\n

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Gas prices<\/h2>\n

Although 2023 has seen a decline from the natural gas price levels seen in 2022, triggered by the war in Ukraine and its effect on global energy markets, high price volatility in Europe has persisted throughout the year, and remains a cause of economic, political and social instability on the continent.<\/p>\n

\n As a consequence of the continued uncertainty in the energy markets, the Spanish government has decided to extend twice during 2023 the different energy protection measures for the war in Ukraine, mainly aimed at households.<\/strong>\n <\/p>\n<\/div>\n<\/div>\n

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Temperatures<\/h2>\n

The year 2023 has been the hottest year on record, with temperatures even higher than the record set in 2022 globally.<\/p>\n

In Spain this has also translated into abnormally high temperatures. The average temperature in peninsular Spain has been +1.3\u00b0C above the 1991-2020 historical average throughout 2023 and has even recorded an anomaly of +1.9\u00b0C in the winter of 2023-2024.<\/p>\n

\n This situation has led to weaker household energy demand than historical averages, even though the number of natural gas supply points has increased as of December 2023.<\/strong>\n <\/p>\n<\/div>\n<\/div>\n

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Technology \u2013 developments in the renewable gases market<\/h2>\n<\/div>\n
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2023 has been the year of consolidation of biomethane and hydrogen as key alternative sources for the decarbonisation of the energy system thanks to their production potential capable of responding to processes currently supported by natural gas, such as industry or heavy transport.<\/p>\n

\n Given the need to limit global warming to 1.5\u00b0C above the pre-industrial period, biomethane arguably has a ready-to-use technology that can accelerate decarbonisation in the short term.<\/strong>\n <\/p>\n<\/div>\n

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In Europe, the ambition of the Fit for 55 biomethane production target was doubled in 2022 to 35 million cubic metres by 2030.<\/p>\n

In Spain, Sedigas has estimated a biomethane production capacity in the country of 163 TWh\/year, which would allow 45% of the national demand for natural gas to be covered.<\/p>\n

\n This places Spain as the third European country with the greatest potential for biomethane production.<\/strong>\n <\/p>\n<\/div>\n<\/div>\n

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On the other hand, the cost of producing green hydrogen<\/strong> depends primarily on two factors: the cost of production using renewable electricity and the cost of developing electrolysers. <\/p>\n

In the last year, there has been a growth of more than 30% in the announcement of new low-emission hydrogen production projects for 2030, although many of them are still at very early stages (45% of them are reported to be at the feasibility study stage).<\/p>\n

\n Thirty percent of the announced projects are in Europe, 55% of which are concentrated in Spain, Denmark, Germany and the Netherlands.<\/strong>\n <\/p>\n

\n In a scenario compatible with limiting global warming to 1.5\u00b0C green hydrogen is a key complement to biomethane for the decarbonisation of heavy industry, aviation, shipping, or seasonal energy storage.<\/strong>\n <\/p>\n<\/div>\n

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Regulation<\/h2>\n<\/div>\n
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The progress made in the framework of the objectives set by the Fit for 55 and RePowerEU through:<\/p>\n