Page 15 - EurOil Week 40 2022

EurOil INVESTMENT EurOil

Enel wraps up Russian sale to

Lukoil, local fund

ITALY PRESIDENT Vladimir Putin has given Italian Enel Russia for €137mn ($134mn). Enel Rus-
energy utility Enel the green light to sell a major- sia controls some 5.6 GW of conventional
Lukoil until now did not ity share in its Russian unit to oil major Lukoil power generation capacity plus an additional
have any significant and investment fund Gazprombank-Frezia, 300 MW of wind capacity at varying stages of
power assets. according to a presidential decree issued on development.
September 30. In its initial announcement, Enel said it
The deal’s completion has been complicated expected the deal to be closed in the third quar-
by a previous decree issued in August, which ter of this year. It said the sale would allow it to
prohibits foreign firms from closing the sale of “focus on its activities mainly in countries where
their assets without Putin’s direct approval. an integrated position along the value chain
“Enel learned about the approval of the can drive growth and enhance value creation
sale of its stake in Enel Russia to Lukoil and from the opportunities offered by the energy
Gazprom-Frezia fund and informs that it will transition.”
proceed with the transaction in the coming Lukoil has not commented on the transac-
days,” a company spokesman for Enel told tion. The company currently lacks any gener-
Reuters. ation units, save for mostly small-scale ones it
Enel announced the deal in June, under uses at specific oil and gas assets, such as fields,
which it will transfer a 56.4% shareholding in refineries and processing plants. ™

NEWS IN BRIEF

Hungary gets sanctions to pipeline deliveries. news website, reported on October 5.
Products and services for nuclear
Appearing on ERR radio news show
exemptions for crude oil and power plants would also be exempted from Hommik on October 4, Kaasik said that while
sanctions. Hungary has recently taken
currently LNG from the US and Norway is
nuclear energy delivery of fuel rods from Russia for its reaching Estonia via the long-established
floating LNG terminal in Klaipeda,
planned expansion of the Paks nuclear power
Hungary received exemptions from European plant. Lithuania, “in October and November,
Union sanctions for pipeline deliveries of Szijjarto called the expansion of Paks a we’ll bring two large shiploads of LNG; one
Russian crude and emergency replacement “cornerstone” of the country’s energy security, large ship constitutes 1 TWh, while, to put
seaborne deliveries, as well as for nuclear accounting for half of electricity production it into context, Estonia’s current [annual]
energy at the EU’s Coreper meeting, Minister and third of consumption. consumption is 3-4 TWh, or three or four
of Foreign Affairs and Trade Peter Szijjarto Hungary’s National Atomic Energy Office such ships, meaning this way Estonia’s annual
said on October 5. (OAH) issued the implementation licence for supply could be guaranteed.”
Earlier in June, EU leaders decided on the expansion of the country’s sole nuclear According to Kaasik, no decision has been
the ban on imports of Russian oil in pipeline power plant in August. made regarding the location of the floating
transport, but exempted delivery of pipeline Russia’s Rosatom is building two 1,200 terminal, a vessel specially fitted-out for the
transport. Hungary, which relies heavily on MW blocks for €12.5bn by 2030. purpose and which could be located on either
Russian crude shipments and Russian gas, side of the Gulf of Finland, both because
both imported via pipelines, argued that the there are now the required facilities in both
import ban would jeopardise its economy. Estonian gas supplier CEO cases (in Paldiski, and in Inkoo, Finland)
The new sanctions package includes a price and because the Baltic connector pipeline
cap on maritime transport to third countries says LNG terminal access links the two countries in any case, though
of Russian crude oil. It does not affect the “at the moment, the signs are that it will go to
exceptions allowing certain EU member needed for gas market Finland. This is my opinion, and there is no
states to continue importing crude oil and decision yet. It could also come here, but it is
petroleum products from Russia by pipeline. competitiveness more likely that it will go to Finland.”
Prime ministers at the forthcoming EU In any case, in the normal run of things,
summit may also introduce a temporary The CEO of Estonia’s natural gas supplier Kaasik said, this is immaterial whether the
price cap on imported gas to help bring Eesti Gaas, Margus Kaasik, says that while ship is located in Finland or Estonia, though
down soaring energy costs. The gas price cap gas prices have started to fall, it is difficult for we are not living in normal times. “We can
has divided the EU as some countries are suppliers to retain market competitiveness always bear in mind that if we have a pipeline
concerned it could make securing supplies without direct access to a Liquefied Natural we have gas, and for the most part we do, but
harder. Hungary has voiced reservations Gas (LNG) terminal, such as that recently given the world we’re in today, that may not be
about an overall cap, which won’t be applied completed in Paldiski, ERR.ee, an Estonian the case indefinitely,” he said.

Week 40 06•October•2022 www. NEWSBASE .com P15