UK: DONG Buys Out Shell's Gas Direct

Dutch explorer and producer DONG Energy is set to strengthen its presence on the UK gas market with the purchase of Royal Dutch Shell's Gas Direct for £30 million.

DONG announced the completion of the deal, which began in October of last year, today. Through the deal, the company will take over Shell's entire stake in Shell Gas Direct, from Shell UK. The company will be renamed DONG Energy Sales UK.

Speaking a statement today, executive vice president of DONG Lars Clausen said the company aimed to make the transition as seamless as possible, minimising any impact to Shell Gas Direct's customers.

"In the new company, DONG Energy Sales UK, our primary objective right now is to secure the customers a smooth transition and continue the first class  service provided so far," he said. "We will strive to enhance the service with new offerings and tailored consulting."

DONG says the acquisition further strengthens its position in the UK, bringing its annual supply there to a total of 2.5 billion cubic metres. It says it is now "among the largest business-to-business gas retail companies  in the UK".

"Building on our long-term investments in upstream oil and gas exploration and production, the new company is a strong growth platform for us to become a major integrated energy company in the UK," Reuters reports Mr. Clausen as saying today.

DONG will retain the entire staff of 130 of Shell Gas Direct in the new company.