SPAIN'S NATURGY Q2 WHOLESALE GAS SALES RISE 12% LED BY LNG

LNG sales volume in the quarter was 35.8 TWh, up 29% year on year, which the company attributed to "availability of greater volumes from Naturgy's long-term contracts, and a greater number of trading and optimization deals."

The company has also boosted the capacity of its LNG tanker fleet, noting that it acquired two new time charter tankers, one in March and one in June.

At the end of the first half, the capacity of the fleet totaled 1.5 million cu m, 34% higher year on year.

In its domestic gas market Naturgy said its Q2 retail sales grew 22% year on year to 4.0 TWh, while sales volumes at its wholesale operations in Europe rose 1% to 54.3 TWh.

Naturgy Europe operates in the gas markets of France, Belgium, Ireland, Luxembourg, Portugal, Netherlands and Germany, besides its domestic Spanish market.

In gas distribution, Naturgy reported a 3% increase in its worldwide volume to 107 TWh, with a 4% increase in Spain to 44.0 TWh and a 3% increase in Latin America to 63.2 TWh.

Client numbers increased in both regions, rising 4% year on year in Latin America to 5.2 million and 1% in Spain to 5.4 million.

The company also reported a 69% year-on-year increase in gas pipeline volume via its Moroccan EMPL subsidiary for the quarter, with 35.0 TWh of Algerian gas transported on the undersea link between Africa and Spain. A further 4.0 TWh from Algeria to Spain through the Medgaz pipeline during the first half of the year, without providing a breakdown by quarter.

POWER OUTPUT SLIPS

In the power sector, distribution was up 4% year on year in Q2 to 13.6 TWh, Naturgy said, with both Latin American and Spanish volume up 4% on the year to 5.5 TWh and 8.1 TWh, respectively.

In terms of power generation, the company said worldwide volume slipped 3% year on year to 10.3 TWh on a 10% drop in international generation to 4.2 TWh.

At the end of the quarter, Naturgy agreed to sell off its 70% holding in South Africa's Kangra coal mine to Menar Holding for around $28 million as well as its stake in Kenya's Iberafrica Power to AEP Energy Africa Limited for around $62 million.

European power generation increased 3% year on year to 6.1 TWh, lifted by stronger hydro generation, which nearly quadrupled year on year to 1.1 TWh.

Menar Holding