E.ON Ruhrgas

Ruhrgas was a major German natural-gas transportation, import, storage, and trading company headquartered in Essen. Established in 1926 as Aktiengesellschaft für Kohleverwertung by Vereinigte Stahlwerke AG and Zeche Mathias Stinnes, it initially distributed coal gas produced by coking plants in the Ruhr industrial region. Its early growth came through the development and acquisition of long-distance pipeline infrastructure, including a 300-kilometre network purchased from RWE in 1928. The company adopted the name Ruhrgas AG as its business expanded beyond its original coal-gas role. During the 1930s, Ruhrgas built a regional transmission system serving major German cities and industrial customers. It also became involved in the attempted integration of natural-gas resources discovered near Bad Bentheim into the existing network. Wartime damage destroyed much of the infrastructure, but approximately 90 percent of the pipeline system had been restored by the end of 1945. In the postwar period, the company resumed expansion and worked with Lurgi on a low-temperature liquefaction process for lignite and oil shale. Ruhrgas developed from a regional industrial-gas distributor into one of Europe’s central gas-import and transmission businesses. It began exporting coal gas to the Netherlands with Thyssengas in 1948 and progressively increased the use of natural gas. Its international role became particularly important from the 1970s, when it concluded a major agreement to import Soviet gas. The arrangement connected German industrial and energy interests with Soviet pipeline development and helped establish Ruhrgas as a principal intermediary for east-west gas flows. The company subsequently contracted for Norwegian gas from the Ekofisk and Statfjord fields and participated in projects such as MEGAL, which transported Russian gas toward France and southern Germany. By the late twentieth century, Ruhrgas operated an extensive transmission and storage system. In 1998 it reported a pipeline network of more than 10,000 kilometres, 26 compressor stations, and 12 underground storage facilities, while selling approximately 50.9 billion cubic metres of gas. Its international activities also included cooperation with Gazprom, participation in gas infrastructure projects, and investments in foreign utilities. E.ON acquired Ruhrgas in March 2003. The business was renamed E.ON Ruhrgas on 1 July 2004 and became part of E.ON’s integrated energy portfolio. Under E.ON, it acquired a controlling stake in Romania’s DistriGaz Nord, later renamed E.ON Gaz România, and joined the Nord Stream and Trans Adriatic Pipeline projects. In 2010, regulatory separation under the European Union’s Third Energy Package transferred the company’s gas transportation and storage operations to E.ON Gastransport, which became Open Grid Europe. E.ON Ruhrgas ceased to exist as a standalone company on 2 May 2013 when it was merged into E.ON Global Commodities SE. That business later became associated with Uniper Global Commodities. The Ruhrgas name continued in the corporate identity of Uniper Ruhrgas International GmbH, reflecting the survival of parts of the former company’s international gas activities rather than the continuation of E.ON Ruhrgas as an independent legal entity.

Ruhrgas was created in 1926 in the Ruhr region as Aktiengesellschaft für Kohleverwertung. Its founding shareholders were Vereinigte Stahlwerke AG and Zeche Mathias Stinnes, and its initial purpose was to distribute coal gas from industrial coking plants. The company expanded quickly by acquiring a 300-kilometre pipeline network from RWE in 1928 and then adopting the Ruhrgas name. By the end of the 1920s it had signed supply arrangements with several large German cities, including Cologne, Düsseldorf, Hanover, and Saarbrücken. The company’s network and sales grew throughout the 1930s. By 1936, its pipelines extended for roughly 1,128 kilometres and carried coal gas from 32 coking plants. Natural gas was discovered near Bad Bentheim in 1938. A connecting pipeline was completed during the Second World War, although the conflict caused extensive destruction to Ruhrgas infrastructure. Reconstruction was rapid, and most of the network had been restored by the end of 1945. During the 1940s, Ruhrgas and Lurgi also developed a low-temperature process for liquefying lignite and oil shale. Postwar expansion transformed Ruhrgas into a national and international gas company. It began coal-gas exports to the Netherlands with Thyssengas in 1948 and gradually increased the share of natural gas in its business. By 1965, the network had reached approximately 3,402 kilometres and sales had risen to 3.3 billion cubic metres. The company’s international importance increased sharply in the 1970s. In 1970 it signed its first major Soviet gas import agreement, an arrangement associated with German steel exports for pipeline construction. Ruhrgas also began supplying Switzerland through the Trans Europa Naturgas Pipeline in 1971. Further supply agreements followed. The company contracted for gas from Norway’s Ekofisk field in 1973, with deliveries beginning in 1977. It also supplied West Berlin with Soviet gas through East Germany and partnered with Gaz de France on the MEGAL pipeline, which entered service in 1980. In 1982 Ruhrgas supported the Urengoy–Pomary–Uzhhorod pipeline and joined a consortium to import gas from the Statfjord field; Statfjord deliveries began after the Statpipe system was commissioned in 1985. By 1998, Ruhrgas owned or operated a network exceeding 10,000 kilometres, together with compressor stations and underground storage facilities. It sold approximately 50.9 billion cubic metres of natural gas that year. The company also developed an international investment profile. In 1999 it contributed to the restoration of the Amber Room in the Catherine Palace near Saint Petersburg. Its international business later included a stake in Gazprom and participation in gas production and transport projects. E.ON acquired Ruhrgas in March 2003. The company was renamed E.ON Ruhrgas in July 2004. At that stage it was reported to be Gazprom’s largest foreign shareholder, with a 6.5 percent stake. The stake was later returned to Gazprom in an asset swap that gave E.ON Ruhrgas an interest in Severneftegazprom, the operator of the Yuzhno-Russkoye gas field. Under E.ON ownership, the company expanded in Romania through the acquisition of a majority stake in DistriGaz Nord and participated in Nord Stream 1 and the Trans Adriatic Pipeline. European energy-market regulation changed the structure of the business. In September 2010, E.ON Ruhrgas’s transmission and storage activities were separated and transferred to E.ON Gastransport, which was later renamed Open Grid Europe. The remaining trading and international commodity activities continued within E.ON’s broader portfolio. On 2 May 2013, E.ON Ruhrgas was merged into E.ON Global Commodities SE and ceased to exist as a separate legal entity. The Ruhrgas name survived in Uniper Ruhrgas International GmbH, a successor associated with international activities, but E.ON Ruhrgas itself is now defunct.

1. 2013Legal entity ceases through merger

   E.ON Ruhrgas was merged into E.ON Global Commodities SE on 2 May.

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2. 2010Transmission and storage activities separated

   The regulated transmission and storage business moved to E.ON Gastransport, later Open Grid Europe.

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3. 2004Renamed E.ON Ruhrgas

   The company formally changed its name to E.ON Ruhrgas.

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4. 2003Acquired by E.ON

   E.ON completed its acquisition of Ruhrgas.

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5. 1998Large-scale transmission and storage network documented

   Ruhrgas reported more than 10,000 kilometres of pipelines, 26 compressor stations, and 12 underground storage facilities.

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6. 1980MEGAL pipeline commissioned

   The MEGAL system entered service, moving Russian gas toward France and southern Germany.

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7. 1975MEGAL partnership established

   Ruhrgas and Gaz de France formed a partnership to develop the MEGAL pipeline.

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8. 1970First Soviet gas import contract

   Ruhrgas signed a major contract to import natural gas from the Soviet Union.

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9. 1948Coal-gas exports to the Netherlands begin

   Ruhrgas and Thyssengas began exporting coal gas to the Netherlands.

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10. 1928Pipeline network acquired from RWE

    The company acquired approximately 300 kilometres of pipeline infrastructure from RWE and adopted the Ruhrgas name.

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11. 1926Company founded as Aktiengesellschaft für Kohleverwertung

    Vereinigte Stahlwerke AG and Zeche Mathias Stinnes established the company to distribute coal gas from Ruhr-region coking plants.

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A large-scale European gas infrastructure and import company positioned between international gas producers and national, municipal, industrial, and utility customers.

• Natural gasEnergy commodity

  Natural gas was the company’s principal commodity. Ruhrgas purchased gas from domestic and international producers, including Soviet and Norwegian sources, and supplied utilities, municipalities, industrial users, and other energy companies.

• Gas transmissionEnergy infrastructure1926

  Ruhrgas developed and operated long-distance pipelines, compressor stations, and cross-border connections. Its transmission network linked production areas, import routes, storage facilities, and German customer markets before the regulated network business was separated in 2010.

• Gas storageEnergy infrastructure

  Underground storage facilities supported seasonal supply, system balancing, and the reliability of Ruhrgas’s import and distribution operations. These activities were transferred to the successor transmission business during the 2010 structural separation.

• International gas projectsEnergy investment1975

  The company invested in or supported cross-border projects including MEGAL, Nord Stream 1, the Trans Adriatic Pipeline, and infrastructure associated with Soviet and Norwegian gas supplies.

• 2013Merger into E.ON Global CommoditiesM&A

  E.ON reorganized its gas and commodity operations after the separation of regulated network assets.

  What changed. E.ON Ruhrgas was merged into E.ON Global Commodities SE on 2 May 2013.

  Aftermath. E.ON Ruhrgas ceased to exist as a standalone legal entity; related activities later became associated with Uniper’s commodity businesses.

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• 2010Separation of regulated network operationsStrategy

  The European Union’s Third Energy Package required greater separation between gas transmission infrastructure and competitive supply activities.

  What changed. E.ON transferred E.ON Ruhrgas’s gas transportation and storage operations to E.ON Gastransport, later renamed Open Grid Europe.

  Aftermath. The move separated the regulated network business from the group’s commodity and trading activities.

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• 2005Expansion into RomaniaM&A

  E.ON Ruhrgas pursued international expansion beyond its German base.

  What changed. It acquired 51 percent of DistriGaz Nord and renamed the utility E.ON Gaz România.

  Aftermath. The transaction strengthened E.ON Ruhrgas’s presence in the Romanian gas utility market.

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• 2003Acquisition by E.ONM&A

  Ruhrgas was a major German gas importer and infrastructure operator with extensive international relationships.

  What changed. E.ON acquired Ruhrgas and integrated it into the group’s energy businesses.

  Aftermath. The company was renamed E.ON Ruhrgas in 2004 and became a vehicle for E.ON’s gas-import, trading, and international infrastructure interests.

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• 1970Commitment to Soviet gas importsStrategy

  Ruhrgas sought to diversify and enlarge its gas supply base as German demand and long-distance pipeline infrastructure expanded.

  What changed. It signed a major Soviet natural-gas import agreement linked to pipeline construction and German steel exports.

  Aftermath. The agreement established Ruhrgas as a central participant in east-west European gas trade and shaped its international strategy for decades.

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• 2013E.ON Ruhrgas merges into E.ON Global Commodities

  E.ON Ruhrgas ceased to exist as a separate company after being merged into E.ON Global Commodities SE on 2 May 2013.

  M&AOther
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• 2010E.ON Ruhrgas joins Trans Adriatic Pipeline project

  E.ON Ruhrgas acquired a 15 percent interest in the Trans Adriatic Pipeline project, extending its participation in European gas-import infrastructure.

  Other
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• 2010Gas transportation and storage operations transferred to Open Grid Europe

  In response to the European Union’s Third Energy Package, E.ON Ruhrgas transferred its gas transmission and storage operations to E.ON Gastransport, later known as Open Grid Europe.

  Regulation
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• 2009Gazprom repurchases E.ON’s Gazprom stake in asset swap

  Gazprom bought back E.ON’s 6.5 percent stake in Gazprom as part of an asset-exchange arrangement under which E.ON Ruhrgas received a substantial interest in Severneftegazprom.

  M&A
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• 2005E.ON Ruhrgas acquires Romanian gas utility stake

  E.ON Ruhrgas acquired 51 percent of Romania’s DistriGaz Nord, which was subsequently renamed E.ON Gaz România.

  M&A
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• 2005E.ON Ruhrgas joins Nord Stream project

  The company agreed to participate in the Nord Stream 1 project, a major Baltic Sea pipeline intended to transport Russian gas to Germany.

  Other
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• 2004Ruhrgas is renamed E.ON Ruhrgas

  The acquired company formally adopted the E.ON Ruhrgas name as part of its integration into E.ON.

  Other
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• 2003E.ON acquires Ruhrgas

  E.ON acquired Ruhrgas, bringing one of Germany’s leading gas import and transmission companies into the E.ON group.

  M&A
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• 1977Ruhrgas begins Norwegian gas imports

  Gas deliveries from Norway’s Ekofisk field began following the company’s agreement to use the Norpipe system.

  Product launch
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• 1970Ruhrgas signs first major Soviet natural-gas import agreement

  Ruhrgas agreed to import natural gas from the Soviet Union in a landmark east-west energy transaction linked to the supply of West German steel pipe and financing for pipeline construction.

  Other
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1. Ruhrgas