Steven Fernandez, Naturgy’s global head of financial markets and corporate development, said during the company’s earnings call on Wednesday that the company “will continue to reduce our gas risk profile.”
“I think the group has been very vocal about this, and we’ve been able to show very clear, successful results,” he said.
“Moreover, our total gas exposure for 2026 is negligible, thanks primarily to our hedging efforts, with risk significantly reduced through 2028. This is made both with US volume hedging and residual positions offset by short sales,” he said.
“Our long-term procurement strategy is also focused on prioritizing security of supply and disciplined risk management. We have made progress on the following areas,” he said.
He noted that Naturgy agreed to buy 1 million tonnes per annum (mtpa) of LNG from US LNG exporter Venture Global LNG for a 20-year term, commencing in 2030, in October last year.
“We have up to 2 new Bcm under long-term SPAs, with additional procurement opportunities under evaluation. We are actively engaged in the market,” he said.
Naturgy’s SPA with Oman LNG expired in 2025.
In November 2025, the company signed a memorandum of understanding with state-owned producer Oman LNG on LNG supplies and a potential joint investment in an LNG carrier.
Under the memorandum, Naturgy aims to explore and discuss a long-term LNG sale and purchase agreement, which may include the supply of up to one million tons annually for 10 years starting from 2030.
Also, Naturgy has a fleet of eight LNG carriers.
Russian LNG
During the call, Fernandez said that Naturgy also has a “proactive management” of the upcoming EU ban on Russian gas imports, effective 2027.
“So all in all, the company keeps reducing the Russian gas risk profile, increasing the visibility, while obviously maintaining the focus on security of supply and our optionality,” he said.
Naturgy has a long-term contract with the Novatek-operated Yamal LNG project in Russia.
In June 2018, the company received its first Yamal LNG shipment under the contract, which includes the delivery of 3 bcm per year for 24 years.
Jon Ganuza, Naturgy’s head of energy management, also discussed during the call the European ban on Russian gas and the purchase of further LNG supplies.
Regarding the ban, he said there are two “overlapping measures that have different scope and different timelines.”
“On the one hand, we have a sanction that is a full ban on Russian LNG, so it not only covers that we could not import LNG to Europe, but we could not do anything with the LNG. But the timeline of that sanction is until July 31 of this year, and if it doesn’t renew, it will die off,” Ganuza said.
“And then there is the second measure. That is the ruling that was approved by the European Parliament in February, and the scope there is more limited. The scope of that ruling it limits itself to the import of Russian LNG to Europe, but it would allow eventually diversions to other markets or other countries,” he said.
“I think that the first thing that we have to look out is whether the sanction will be renewed on July 31 or not, and that would, you know, mean a different scenario for a company like ours,” he said.
Alternatives
Answering a question about other alternatives to replace or to top up Naturgy’s current gas procurement volumes, he said that “we have to work in advance, and that’s why we’re always looking to different procurement solutions that would include increasing the security of supply, that would increase our diversification.”
“We are having talks with different parties, and if we find something that makes sense and is sensible for both parties, and it strengthens our supply procurement portfolio, of course, we will move ahead with that,” Ganuza said.
