Energy Management

Galp intends to boost the role of Energy Management in its operations, enabling value creation through integration, encompassing crude oil, oil products, natural gas and electricity. The Company will be able to capture new trading opportunities, through the management of the integrated margin, optimisation of supply-to-sourcing and taking advantage of energy sales dynamics and risk management.

Raw materials and oil products

Galp manages the procurement of crude oil and other raw materials, maximising its refining margin captured, taking into account the strategy of supply diversification and extracting value from the existing asset base.

Galp imported crude from 11 different countries, with medium and heavy crude oils accounting for 87% of the total. Galp's entire crude sourcing was of lower sulphur content.

The oil products resulting from our refining and trading activities are channelled to our Commercial business unit, and externally to other operators and exports. In 2021, volumes sold totalled 14.8 mton, of which 7.0 mton were sold to Commercial, 2.8 mton to other operators and 5.0 mton were exported.

The U.S.A., particularly the East Coast, remains a relevant destination for the export of heavy gasoline components. Fuel oil, gasoline and diesel were the main products exported, accounting for 34%, 31% and 26% of total exports, respectively, mostly to the U.S.A., Spain and Gibraltar.

Natural Gas

Galp has an active NG/LNG supply and trading business. Currently, Galp's NG and LNG supplies are sourced mainly through long-term contracts established with Sonatrach in Algeria and LNG in Nigeria. These represented about 88% of the Company's supply sources in 2021.

In parallel, Galp also explores other sources of supply, namely the Spanish and French wholesale markets. The remaining needs are covered through spot market operations.

Galp and Sonatrach signed a new agreement in 2019 under which Galp will continue to source natural gas from Algeria, through the Medgas pipeline to Iberia. Galp has secured 1 bcm (c.12 TWh) per year for a 5-year period.

In 2020, Galp signed a Sales and Purchase Agreement (SPA) with Nigeria LNG Limited for the supply of 1 mtpa (c.16 TWh) of LNG over a period of 10 years.

Aiming at diversifying and increasing the competitiveness of its long-term sourcing basket, Galp signed an agreement with Venture Global LNG for the acquisition of 1 mtpa (c.16 TWh) from the LNG export terminal in Calcasieu Pass, U.S.A., over a period of 20 years, starting in 2023. At the end of 2020, Galp agreed to hire an LNG transport vessel from Pan Ocean Co., Ltd for an initial period of 5 years, to support the transportation of LNG from Venture Global LNG.

The natural gas resulting from our sourcing activities is also channelled internally to our Commercial business and auto consumptions in our refinery, and externally to trading activities and electro producers. The volumes of NG/LNG sold via trading were entirely via network trading.

Additionally, Galp is actively working to explore all options for the sale of its associated gas produced in its Brazilian operations. Following the new framework for the natural gas market liberalisation in Brazil, Galp has established a series of gas commercialisation contracts with a start date of January 1, 2022. This has opened marketing opportunities for Galp, allowing the Company to expand its presence along the gas value chain, targeting new clients and creating new business opportunities.

In 2021 year end, Galp has entered into an agreement with Companhia de Gás da Bahia (Bahiagás) to sell a part of its Brazilian natural gas production. We also secured the offtake of Repsol Sinopec’s natural gas production from Sapinhoá Norte, broadening the Company’s sourcing alternatives in Brazil.

In addition, Galp signed agreements with Petrobras and Transportadora Associada de Gás to ensure access to the processing and transportation infrastructures, respectively.


Galp develops its NG/LNG trading activity in the international market and has also been consolidating its position in natural gas markets in European hubs, namely Spain, France and the Netherlands, through the NG network trading activity.


Galp is present in the electricity market through the Iberian Electricity Market (MIBEL), both on the spot market (OMEL) and the forward market (OMIP). This activity is mainly aimed at optimising Galp’s sourcing and renewables production, guaranteeing the needs of the Commercial business and enabling value creation.

Galp currently holds two long-term contracts for the purchase of renewable energy from solar power plants, for a total of approximately 650 GWh per year, as part of the strategy to ensure a supply of efficient and environmentally sustainable energy solutions.