In 2014, EDF signed a contract for LNG imports from the United States, for an annual supply of 0.7 million tonnes of LNG (1 billion m3 of natural gas per year) over a 20-year period starting from May 2020.
In 2020 EDF also signed a 20-year purchase contract for LNG from the United States (1 million tonnes per year, i.e. 1.4 billion m3 of natural gas). Deliveries under this contract are due to begin in 2026.
Under the contract with the Dunkerque LNG methane terminal, EDF also benefits from approximately 61% of the terminal’s regasification capacities until 2037, in return for payment of an annual premium of approximately €150 million. A provision for onerous contracts has been recorded in connection with this contract since 2018.
The French State holds 89,01% of the capital of EDF at 31 December 2022, and is thus entitled in the same way as any majority shareholder to control decisions that require approval by the shareholders. On 8 February 2023, the AMF published the result of the French government’s simplified tender offer for the equity securities of EDF, after the offer closed on 3 February 2023. Following completion of the offer, the French State will own 95.82% of the share capital with at least 96.53% of voting rights, and 99.96% of the outstanding OCEANE bonds (see note 2.2.9). This fulfils the conditions for proceeding to a compulsory squeeze-out for EDF shares and OCEANEs. As indicated in an AMF notice of 25 January 2023, while awaiting the Paris Court of Appeal’s ruling on the action brought by the employee shareholding fund Actions EDF and the shareholders’ associations Énergie en actions and Association pour la défense des actionnaires minoritaires seeking annulment of the AMF’s approval of the offer, the French government has made an undertaking that it will not proceed with the compulsory squeeze-out until the Court of Appeal has issued its decision on the merits of the case.
In accordance with the legislation applicable to all companies having the French State as their majority shareholder, EDF is subject to certain inspection procedures, in particular economic and financial inspections by the State, audits by the French Court of Auditors (Cour des comptes) or Parliament, and verifications by the French General Finance Inspectorate (Inspection générale des finances).
The public service contract between the French State and EDF was signed on 24 October 2005. This contract is intended to form the framework for public service missions assigned to EDF by the lawmaker for an unlimited period. The Law of 9 August 2004 does not stipulate the duration of the contract.
Concerning the ordinary service of LPG distribution and supply in the cities of Ajaccio and Bastia in Corsica, Engie informed EDF in October 2020 that it was considering terminating its LPG activities in Corsica.
Article 96 of France’s Finance Law for 2022 allows the State to bear part of the costs associated with conversion of the LPG networks to electricity or renewable energies, for a maximum period of twenty years to be set by official order.
This measure currently has no impact for EDF. Ultimately, the prospect of ending LPG distribution operations and converting uses to electricity will need investments to reinforce the electricity distribution networks.
Engie has made a formal demand to the cities of Bastia and Ajaccio to notify attribution of concessions by 31 July 2023 at the latest, otherwise it will terminate its LPG operations in Corsica.
EDF’s relations with public sector entities mainly concern Orano. Transactions concern:
Several important agreements exist between EDF and Orano:
Relations between EDF and Orano Recyclage (formerly Orano Cycle) concerning transportation, processing and recycling of spent fuels are described in note 26.
