Page 14 - EurOil Week 50 2020

EurOil PIPELINES & TRANSPORT EurOil

DESFA lands operator role at

Kuwaiti LNG terminal

KUWAIT GREEK gas transmission system operator Kuwait already imports LNG at its 5.8mn
DESFA has won a contract to run Kuwait’s tonne per year (tpy) Mina Al-Ahmadi terminal,
DESFA cited its second LNG import terminal, following a commissioned in 2009. But the Gulf state wants
experience at the tender. to expand the use of gas in power generation, in
Revithoussa LNG DESFA will operate and maintain the facility order to cut down on costlier and more polluting
terminal as a factor in Al-Zour for five years. In a statement, the grid fuel oil. While the country is making efforts to
behind its contract win. firm said it had secured the contract thanks its increase domestic supply, it also recognises that
“high specialisation” and “know-how”, as well as more LNG will be needed to keep up with the
that of its shareholders, Italy’s Snam and Spain’s pace of demand growth.
Enagas. The Al-Zour terminal is set to receive up to
“The experience gained by DESFA from 3mn tpy of LNG from Qatar Petroleum under
managing the Greek transmission system and a 15-year deal signed last year. The facility is
the LNG terminal in Revithoussa also had a equipped with eight storage tanks, each with a
catalytic contribution to the undertaking of the 225,000 cubic metre capacity.
project,” it said. DESFA has been operating the Revithoussa
The building of the Al-Zour terminal began LNG terminal in Greece since 2008 and the com-
in 2016 and is expected to finish next year, with pany reportedly wants a role in the development
commercial deliveries commencing in 2022. It of a second Greek regasification facility planned
will supply gas to local power plants and indus- in Alexandroupolis. Snam has a 39.6% stake
try, including a new 615,000 barrel per day (bpd) in DESFA, while Enagas has 13.2%. Belgium’s
oil refinery that Kuwait National Petroleum Co. Fluxys also has 13.2% and the Greek government
(KNPC) is building. has 33%. ™

INVESTMENT

OMV sells German filling station

network to UK’s EG for €485mn

GERMANY UK filling station operator EG Group is set to In addition to the €485mn purchase price,
acquire a network of 285 stations in southern “EG Group will also assume outstanding lease
OMV will retain its Germany from Austria’s OMV for €485mn liabilities resulting in a total enterprise value for
refinery in Burghausen. ($588mn), the latter announced on December the business of approximately €614mn,” OMV
14. said.
OMV launched its search for a buyer for the EG Group was founded by the UK’s billion-
network in March, as part of a broader plan to aire Issa brothers, who are also looking to acquire
raise €2bn to fund a deal to make it the majori- British supermarket chain Asda from US retail
ty-owner of petrochemicals producer Borealis. giant Walmart.
“This marks a further step in our previously “We are very pleased to be welcoming the
announced €2bn divestment programme and OMV Deutschland filling station business into
this transaction will reduce OMV’s debt by EG Group, Mohsin and Zuber Issa said in a joint
approximately half a billion euros at the time of statement. “This attractive portfolio of fore-
closing,” OMV CEO Rainer Seele commented in courts with significant retail and food service
a statement. operations is an exciting opportunity to expand
The stations in question are situated in the EG’s footprint in Germany, a key European mar-
German states of Bavaria and Baden-Wuerttem- ket where we see significant growth potential for
berg. OMV also has a refinery in Burghausen in our group.”
Bavaria but the plant is mostly focused on petro- EG already operates in Germany under the
chemicals rather than motor fuels, and there is ESSO fuel brand, and under the deal it will
“only a very limited degree of integration” with inherit existing fuel supply agreements from
its fuel retail business in the area. OMV. The transaction is expected to close in
“OMV remains strongly committed to its remain- 2021, EG said, subject to regulatory approv-
ing operations in Germany,” the company said. als. ™

P14 www. NEWSBASE .com Week 50 17•December•2020