DONG Energy is an integrated energy company with leading market positions in Denmark and other key areas of Northern Europe. DONG Energy A/S is a holding company and is incorporated in Denmark.
Over the past few years, DONG Energy has shifted its focus from natural gas sourcing, wholesale, exploration, and gas and oil production to becoming an integrated energy company with activities across the value chain.
Founded in 1972
DONG Energy was founded as Dansk Naturgas A/S by the Kingdom of Denmark on 27 March 1972 (named changed to Dansk Olie og Naturgas A/S in 1973 and to DONG in 2002), as a vehicle to develop Danish energy activities. The company has expanded significantly through organic growth and acquisitions both in Denmark and throughout Europe. Most significant was the acquisition of five Danish power companies in 2005: Elsam, Energi E2, Nesa, KE Holding and Frederiksberg Elnet Group.
Parallel to the acquisition, DONG Energy acquired 10.34% of the Ormen Lange gas field in February 2005. This acquisition represented a major step in shifting from oil to natural gas. Commercial production from the Ormen Lange field started in October 2007.
Four primary business segments
We have organised reporting into four major business segments, as follows:
Exploration & Production (E&P):
E&P explores for, develops, and produces natural gas and oil in the Central North Sea area (offshore Denmark and Norway), offshore mid-Norway, the Atlantic Margin (the West of Shetlands area offshore the UK and offshore the Faroe Islands) and Greenland. E&P’s focus is on gas exploration and production supporting down-stream gas sales in Markets.
Generation:
Generation produces power and heat primarily in Denmark but is expanding to other parts of Northern Europe. We generate power from thermal-based power plants and renewable sources, such as wind.
Distribution:
Distribution is responsible for distributing gas and power to Danish customers and operating one of the two natural gas storage facilities in Denmark. The activities and revenue are regulated under the Danish Natural Gas and Danish Electricity Supply Acts, by Danish Energy Regulatory Authority (DERA).
Markets:
Markets procures natural gas and power and sells these commodities and related products and services in Northern Europe. We source gas primarily from Danish Underground Consortium (DUC), but an increasing supply will come from E&P and the Ormen Lange gas field. Natural gas is sold to local gas distribution companies in Denmark, Sweden, and Germany, as well as industrial customers and residential consumers, primarily in Denmark. We sell power mainly to Danish consumers. Markets also owns and operates certain infrastructure assets and manages the supply contract portfolio. Additionally, Markets handles certain parts of our group-wide risk management.