Integrated Annual Report 2018
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Naturgy is an integrated energy group supplying gas and electricity to almost 18 million customers. It focuses on the gas distribution and supply and on generating, distributing and supplying electricity. It also operates other business lines, such as energy which enhance the diversification of activities and revenues, staying at the forefront of new market trends, meeting customers' specific needs and offering them an integrated service not confined to selling energy.

Business model

The long-term commitment tovalue creation and sustainable management is specified in the Corporate Responsibility Policy. This policy undertakes eight commitments to the company’s stakeholders. These commitments are horizontal and are present throughout the company’s business process, based on the generation ofeconomic, social and environmental wealth.

Naturgy's business model is implemented through a number of companies in Spain, elsewhere in Europe, and in Latin America and Africa, and is underpinned by the following main businesses. Throughout the value chain, Naturgy's business model stands apart as a leader in the gas sector and a key player in the electricity sector, in both cases ensuring a regular supply of gas and electricity, which is essential to providing a quality service and fulfilling the company's social mission; providing a broad range of value-added services and fostering sustainable innovation to drive development.

Gas & Power

of Ebitda: Spain, Europe and Latin America

Infrastructures EMEA

of Ebitda: Spain and Africa

Infrastructures LatAm South

of Ebitda: Latin America

Infrastructures LatAm North

of Ebitda: Latin America

Note: -5% other activities.

Worldwide presence


NG/LNG commercialisation.

NG/LNG commercialisation.

Exploration, transportation, distribution and commercialisation of gas and electricity. Generation (combined cycles, nuclear, hydraulic, coal, co-generation, mini-hydraulic and wind).

NG/LNG commercialisation. Montoir regasifi cation.

NG/LNG commercialisation.

NG/LNG and electricity commercialisation.

NG/LNG commercialisation.

NG/LNG and electricity commercialisation.

United Kingdom
NG/LNG commercialisation.


Gas distribution (30 municipalities in the north and west of the province of Buenos Aires, 1.7 million customers) and electricity distribution (0.2 million customers).

Gas distribution (Rio de Janeiro state, São Paulo South and 1.1 million customers). NG/LNG commercialisation and generation (153 MW solar).

Gas distribution (18 provinces and 0.6 million customers), electricity distribution and transportation (13 provinces and 2.9 million customers). Wind and solar generation projects.

Costa Rica
Generation (101 MW, hydraulic).

Gas distribution (ten states including Mexico City and 1.8 million customers) and generation (2,289 MW, combined cycles and 234 MW, wind)..

Electricity distribution (Panamá Central, West, Inland, Chiriquí and 0.7 million customers) and generation (22 MW, hydraulic).

Gas distribution (Arequipa).

Puerto Rico
NG/LNG (regasifi cation plant) infrastructure and generation of electricity.

Dominican Republic
Generation (198 MW, fuel-oil).

Asia, Africa and Oceania

NG/LNG supply and infrastructure, and Medgaz gas pipeline.

Wind generation (96 MW).

NG/LNG commercialisation.

NG/LNG supply and infrastructure (Damietta liquefaction plant).

NG/LNG commercialisation.

NG/LNG commercialisation.

NG/LNG commercialisation.

NG/LNG infrastructure and Maghreb-Europe gas pipeline.

NG/LNG supply and infrastructure (Qalhat liquefaction plant).

NG/LNG commercialisation.

NG/LNG commercialisation.

NB: Does not include the power distribution business in Colombia as the stake in Electricaribe ceased to be consolidated as at 31 December 2016 nor in the gas distribution in Italy and Colombia, electricity distribution in Moldova, electricity generation in Kenia and mining in South Africa business because they have been reclassifi ed to discontinued operations.

Business lines

Leadership in the gas business

Networks Gas    
  Gas distribution Infrastructures Procurement Supply
  10.6 million distribution connections.
119,998 km of network.
Eight LNG carriers.Two transportation pipelines, Maghreb-Europe (EMPL) and Medgaz. ~ 30 bcm supply portfolio. 378 TWh of gas supplied

Our positioning

Leader in Spain with a 69% market share, distributing natural gas to more than 1,000 municipalities in nine autonomous regions and 5.4 million customers.

Latin America
Latin America's top distributor, catering for more than 5.2 million customers. Presence in Argentina, Brazil, Chile, Mexico and Peru and in six of the ten largest Latin American cities.

  • Eight LNG carriers (1.3 Mm3).
  • Management of the main gas pipeline supplying the Iberian Peninsula, the Maghreb-Europe pipeline (EMPL), and a 14.9% interest in the Medgaz pipeline.
  • Interest in one regasification plant (Ecoeléctrica) and two liquefaction plants (Damietta and Qalhat).
  • Proprietary storage capacity of 0.5 bcm and leased capacity of 1 bcm.
Business model based on the diversification and flexibility that have made Naturgy a global operator with a strong international profile..

Naturgy has procurement contracts with suppliers worldwide, both in a gaseous state (NG) and in the form of liquefied natural gas (LNG).
Unique access to markets: almost 11 million customers and LNG sales in numerous countries worldwide.

A global operator with the flexibility to tap markets offering attractive margins.

39% market share in Spain.

Competitive supply to combined cycle plants (CCGT).

Our strength

Naturgy has an outstanding position in the markets where it operates, affording it an platform for organic growth, in terms both of attracting new customers in municipalities with gas and of expanding networks to areas without gas. Naturgy has an integrated gas infrastructure aimed to afford the business considerable stability, making its operations more flexible and enabling it to transport gas to the best business opportunities.

Its storage capacity is seeking to ensure a constant supply, avoiding the impact of seasonal fluctuations or peaks in demand.
Its diversified procurements portfolio enables it to tap value-added markets. Naturgy has a diversified portfolio of end customers, and supplies gas both in Spain and internationally.

Its positioning in international markets is seeking to obtain higher margins through trading.

Naturgy is a leader in dual fuel supply and it offers a broad range of value-added services.

Standard-bearer in the electricity business

Networks Electricity  
  Electricity distribution Generation Supply
  7.6 million supply connections. 215,532 km of network. 15.6 GW of power generation capacity. 35.4 TWh supplied.

Our positioning

The third-largest operator in the Spanish market, where it distributes electricity to 3.7 million customers.
Latin America
Presence in Argentina, Chile and Panama (3.8 million customers).
Capacity of 12.5 GW, with a significant presence in five technologies: 7 GW CCGT, 2 GW hydroelectric, 1.7 GW coal, 1.2 GW renewable and 0.6 GW nuclear power.
Capacity of 3.1 GW: 2.3 GW CCGT (Mexico), 0.2 GW oil-fired (Dominican Republic), 0.1 GW hydroelectric power (Costa Rica and Panama) and 0.5 GW renewables (Mexico, Australia and Brazil).
Leader in the mainstream consumer and residential segments, with a total market share of 14.0% in Spain.
One of the main traders in the Spanish market.
A dual supply and a broad range of valueadded services.

Our strength

Naturgy is a leader in the markets where it operates. Naturgy is one efficient operator in terms of operation and maintenance costs in the electricity distribution business. The company has considerable knowhow in the generation technologies that operates and its infrastructure can adapt to the needs of each energy model and to the reality of each country.

The company’s good positioning in Spain and Latin America will enable it to make the best of investment opportunities in generation.
Being a leader in the combined supply of natural gas and electricity affords the company major advantages, such as lower service costs, integrated customer care and lower acquisition costs, not to mention greater customer loyalty.

Value creation and sustainable management

The long-term commitment to value creation and sustainable management is specified in the Corporate Responsibility Policy, which provides the common framework for action that guides the company's socially responsible conduct; it was approved and updated by the Board of Directors in December 2015, based on international best practices and the recommendations enshrined in the Code of Good Governance of Listed Companies.

This policy undertakes eight commitments to the company's stakeholders. These commitments are horizontal and are present throughout the company's business process, based on the generation of economic, social and environmental wealth.

1) Commitment to results.

2) Service excellence.

3) Responsible environmental management.

4) Interest in people.

5) Health and safety.

6) Responsible supply chain.

7) Social commitment.

8) Integrity and transparency.

Naturgy has all the essential kinds of capital with which to develop its business model, which is based on the responsible and sustainable management of all the resources it uses.


Related pages

1. Letter from the Chairman 2. Main milestones in 2018 3. Business performance and results

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