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res has signed an agreement with Serbian some of its assets to the world’s biggest oil and June 21. The price of Eurodiesel at petrol
Srbija Gas on the construction of a pipeline gas company, Saudi Aramco, and Hungarian stations that are not located on highways
that would supply Republika Srpska with state-controlled refiner MOL. will cost HRK13.08 (€1.74) per litre, while
Russian natural gas via Serbia. “The extensive commitments offered a litre of Eurosuper 95 petrol will cost
by PKN Orlen will ensure that the relevant HRK13.50.
Polish markets remain open and competitive,” Blue-dyed diesel will cost up to HRK9.45
Russia assures Hungary it will the Commission’s Vice President Margrethe per litre.
The decision will affect 94% of petrol
Vestager said in a statement.
make up gas delivery shortfall or less choice for fuels and related products stations in the country and will be in force
“The merger will not lead to higher prices
for two weeks. The government will not cap
Deliveries of Russian gas to Hungary have for businesses and consumers in Poland and the retail price of premium fuels.
dropped to 88% of usual levels in recent days Czechia,” Vestager also said.
because of technical issues, but the country’s PKN Orlen said that it would complete the
energy supply remains secure, Minister of merger in about four weeks. Bulgaria-Greece gas link starts
Foreign Affairs and Trade Peter Szijjarto said In key transactions that the Commission
in a statement issued on June 21. said must happen for the merger to become trial filling
Gas deliveries to Western Europe have reality, Saudi Aramco bought the stake
been reduced significantly because equipment in a Lotos-operated Gdansk refinery for A trial filling of the Greece-Bulgaria gas link
used for pipeline maintenance has not been PLN1.15bn (€250mn). started and will last until the end of June,
returned due to the sanctions against Russia, Saudi Aramco also acquired full stakes in public broadcaster BNR reported on June 20.
Szijjarto was told by Alexander Novak, Lotos’ wholesale subsidiaries Lotos SPV 1 and The Bulgarian government has put a lot of
Russia’s deputy prime minister in charge of Lotos-Air BP Polska for undisclosed amounts. effort into completing the pipeline in order to
energy. MOL will buy Lotos’ retail operations, be able to receive more gas from Azerbaijan as
Daily deliveries of Russian gas to Hungary consisting of 417 petrol stations in Poland part of its efforts to compensate for the halted
have dropped from 12 mcm to around 10.6 for USD610mn plus a variable component Russian deliveries and to achieve energy
mcm, but that does not pose a problem for depending on debt and working capital of independence from Moscow.
supply security. While a daily 9.4 mcm of gas Lotos’ retail subsidiary Lotos Paliwa. The technical filling is the last phase, after
is arriving via Turkey and Bulgaria through The deal also assumes that PKN Orlen will which, on July 1, the interconnector should
an interconnector with Serbia, without buy 144 petrol stations in Hungary from MOL start normal work. That would allow Bulgaria
interruption, gas deliveries via Austria have and 41 in Slovakia for €229mn. to start receiving cheap gas from Azerbaijan
been reduced by a small degree, he added. Companies involved in taking over other, immediately.
Russia offered assurances that Gazprom smaller, assets of Lotos included Poland’s In May, the energy authorities of Bulgaria
would make up for the delivery shortfall, Unimot and Hungary’s Rossi Biofuel. and Greece urgently took steps to certify
complying with the conditions of Hungary’s Poland wants to make PKN Orlen a large ICGB and now EU approval is expected to
long-term gas delivery contract signed in all-energy company able to move closer to finalise the certification procedure.
October. The 15-year contract with the giants like BP, Total, Shell, or Repsol, which The completion of the gas interconnector
Russian gas giant Gazprom guarantees the are investing in their value chains and in was delayed for 12 years by the former
supply of 4.5 bcm of gas through Serbia and prospective branches such as renewables or governments led by Boyko Borissov. Once
Austria, bypassing Ukraine. hydrogen. completed, it will allow Bulgaria to receive
Hungary’s government has asked for the Following the merger with Lotos, PKN 1bn cubic metres (bcm) of cheap natural
replacement gas to be delivered through the Orlen’s next goal is to take over another state- gas from Azerbaijan, significantly higher
pipeline running from Serbia, and talks on controlled entity, the oil and gas exploration than the current 300mn cubic metres. The
the matter have started at the technical level, and production company PGNiG. That is amount of gas transported through the
according to Szijjarto. expected by early October, PKN Orlen said. interconnector from Azerbaijan to Bulgaria
The ministry recalled that Russian gas could be increased to 3bcm per year, which
delivery via the Turkish Stream pipeline would completely cover the country’s annual
has been suspended for a few days due to Croatia’s government caps fuel consumption.
scheduled annual maintenance. After Gazprom stopped deliveries of
prices at petrol stations not natural gas to Bulgaria at the end of April, the
government negotiated additional deliveries
Brussels clears PKN Orlen – located on highways from Azerbaijan, but at a higher price than
that agreed for the gas that will be supplied via
Lotos merger cap fuel prices at petrol stations that are the interconnector.
Croatia’s government has decided to
The €220mn gas link was supposed to be
The European Commission gave a final nod not located on highways, Prime Minister ready by the end of 2020 but was delayed by
on June 20 to the merger of Polish refiner Andrej Plenkovic said on June 20 following the then government due to administrative
Lotos with peer PKN Orlen. a government conference call meeting. issues.
The merger takes place after PKN The government has already capped The 180km gas link that has an annual
Orlen met several conditions set out by the retail margins on fuel prices after the capacity of 3bn cubic metres is being built
the Commission in order to reduce the start of the Russian war in Ukraine to help by a joint venture of Bulgaria’s state energy
transaction’s impact on Poland’s fuel market. households and companies. company BEH and Greece’s gas utility DEPA
The conditions included Lotos’ divesting The new measure enters in force as of and Italy’s Edison (EDNn.MI).

Week 25 23•June•2022 www. NEWSBASE .com P15