NACE 35.2 – Manufacture of Gas; Distribution of Gaseous Fuels through Mains | Public Tenders

Definition: NACE 35.2 covers the production and distribution of gaseous fuels through mains, including the manufacture of gas from coal as well as the distribution of liquefied petroleum gas. The group belongs to Section D (Electricity, gas, steam and air conditioning supply) and Division 35.

Legal basis: NACE Rev. 2 (Regulation (EC) No 1893/2006) · Last updated: April 2026

What does NACE 35.2 cover?

NACE 35.2 (Manufacture of gas; distribution of gaseous fuels through mains) classifies companies that process, transport and distribute natural gas and other gaseous energy carriers to end customers — a core area of European energy infrastructure with comprehensive utilities procurement law.

Group 35.2 is broken down into three classes:

Gas distribution companies and long-distance gas companies qualify as utility contracting entities under Directive 2014/25/EU.

Public Tenders: Gas Supply Public Contracts

Gas network operators and municipal utilities award substantial contracts for network infrastructure, metering technology and operational services; public institutions procure gas supply contracts under general procurement law.

Typical Contract Types

• Gas pipeline installations and network expansion: Laying of gas pipelines, renewal of legacy networks (replacing cast iron with plastic), pressure-reduction installations
• Gas pressure control systems (GDRA): Supply and installation of pressure control installations and metering installations for transfer stations
• Smart metering gas: Installation of digital gas meters as part of the statutory smart meter rollout
• Gas procurement for public institutions: Tendering of natural gas supply contracts for administrative buildings, schools, hospitals and heating centres
• Hydrogen network infrastructure: As part of the energy transition, new tenders for H₂-compatible pipelines and fittings are emerging

Relevant CPV Codes for NACE 35.2

Contracting Authorities and Bidders

Public Contracting Authorities and Utility Contracting Entities

Long-distance pipeline operators (e.g. Gas Connect Austria, bayernets) are subject to utilities procurement law as utility contracting entities. Municipal public utilities with gas distribution tender infrastructure contracts. Public building operators tender gas supply contracts as standard procurement. Municipalities with their own heating plants procure natural gas or biogas for district heating generation.

Bidders and Suitability Requirements

• Approvals: DVGW certification (Germany) or ÖVGW certification (Austria) for work on gas installations
• Specialist expertise: Qualification evidence for civil engineering work on gas pipelines, specialist contractor recognition
• Safety standards: Safety management and accident prevention regulations for work on gas-bearing pipelines
• Financial capability: For larger network projects, evidence of sufficient creditworthiness and insurance

FAQ

Do special procurement law rules apply to gas procurement contracts? Gas supply contracts for public institutions are supply contracts and are subject to general procurement law (Directive 2014/24/EU). If the threshold (EUR 221,000) is exceeded, EU-wide tendering is required. For procurement by gas suppliers themselves (e.g. raw gas purchasing), utilities procurement law applies.

How are natural gas pipelines specified in public tenders? The specification for gas pipelines is based on technical codes (DVGW Code of Practice, ÖNORM series). Pressure class, pipe material (PE-HD, steel), nominal diameter and corrosion protection are described functionally. Requirements regarding the qualification of the contractor (DVGW certification) are also typical.

NACE 35.2 in context: Section D and Division 35

• NACE D – Electricity, gas, steam and air conditioning supply: Parent section
• NACE 35 – Electricity, gas, steam and air conditioning supply: Parent division
• NACE 35.1 – Electric power generation, transmission and distribution: Adjacent group
• NACE 35.3 – Steam and air conditioning supply: Further group in Division 35

Last updated: April 2026 All information is provided without guarantee. For legally binding advice, please consult a law firm specialising in public procurement law.