Today DONG Energy has completed the £30 million acquisition of Shell Gas Direct from Shell UK, underlining its commitment to  growth in the UK.

The deal has created a new business, DONG Energy Sales (UK) Ltd, which is one of the UK’s largest commercial gas suppliers with an 11 per cent market share and more than 5,000 industrial customers.

Lars Clausen, Executive Vice President at DONG Energy, said: “We are pleased to announce the completion of this landmark development for DONG in the UK.

“The formation of DONG Energy Sales UK complements our existing gas and power assets with a well-run and high-performing retail business. 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.

“The highly skilled and experienced team combined with the business’ great reputation provides a strong position in the retail market which we are committed to maintaining and enhancing.”

All 130 Shell Gas Direct employees, including General Manager Mike Hogg, have joined the new company which continues to operate from its existing offices in central London. 

DONG Energy Sales intends to develop its position by maintaining the market-leading customer service offered by Shell Gas Direct and by introducing new innovative services and products, including energy saving partnerships. The company is already advancing plans to launch a dual fuel offer to begin supplying customers with power in addition to natural gas.

Already an established player in the UK, DONG Energy has activities throughout the energy value chain including oil and natural gas exploration, offshore wind farms, and a gas-fired power station.

Shell Gas Direct recently achieved the No.1 ranking for customer service for a record seventh consecutive time in the twice-yearly Datamonitor survey of industrial and commercial gas customers.

Shell Gas Direct’s existing management team remain in place and will continue to be led by General Manager Mike Hogg, who has been in the post since 2007.

Mike Hogg commented:  “At this exciting time for our customers and our team, it is reassuring that our new owner is an established energy company in the UK, which shares our values and commitment to delivering first class customer service.

“The move will bring with it new opportunities for customers and we’re looking forward to introducing innovative products and services in the near future. We have already opened up dialogue with a number of customers about our dual fuel plans and hope to realise these ambitions within the next 12 months.

“In the meantime, it remains very much business as usual. Customers have my personal guarantee that DONG Energy Sales will continue to strive to deliver and exceed the excellent customer service that they expect.”

DONG Energy’s total investment in the UK since 2005 amounts to £3.9 billion.

In April 2012, DONG Energy strengthened its international team with the appointment of Evert den Boer as Senior Vice President from Nuon-Vattenfall. Evert den Boer commented:  “I’m very much looking forward to working with the former Shell Gas Direct management team. Right now our focus is on continuity and securing our customers a smooth transition. Looking ahead it is my clear ambition to take the best from each of our markets and create new, exciting opportunities.”