Page 18 - DMEA Week 22

DMEA NEWS IN BRIEF DMEA

Egypt cancels $330mn of 16.25%, whereas a litre of kerosene is set to October to buy out CEPSA’s stake in Medgaz.
Naturgy and Sonatrach had agreed last
remain the same at TZS1,568.
debt for gas supplies to shall continue the same as those that were That deal raised the former company’s holding
The utility regulator said Kerosene prices
in the pipeline operator up by 34.05% from
factories published on May 6 because there was no new the previous level of 14.95%.
Sonatrach did not disclose the financial
consignment of lerosene that was received
The Egyptian cabinet has approved a through Dar es Salaam port in May. terms of the deal. But it did go on to say that
proposal by the Ministry of Petroleum it intended to work with Naturgy to move
and Mineral Resources to cut outstanding forward with the expansion of the Medgaz
natural gas debt owed by factories up until Turkey’s regulator warns system in 2021. The pipeline’s capacity is due to
December 31 2019. rise from 8.3bn cubic metres per year to 10.2
During its weekly videoconference that fuel prices are too high bcm per year following the construction of a
meeting, the cabinet, chaired by the prime fourth turbo-compressor unit for the Beni-Saf
minister Mostafa Madbouly, approved to Turkey’s EPDK energy regulator said on June gas compression station in Algeria, it stated.
relieve indebted factories from EGP5.31bn 2 that fuel prices in the country were too high Medgaz is the operator of a 24-inch (610-
($330,000) in debt, according to a statement and that it would have to step in if companies mm) pipeline that follows a 210-km route
on June 3. did not lower them. across the floor of the Mediterranean from
The reduced amount, which involves In a statement, EPDK chairman Mustafa Beni-Saf, Algeria, to Almería, Spain. On the
late fees and other penalties, is line with Yilmaz said that volatility in fuel prices amid Algerian side, the Medgaz system is connected
the government’s efforts to support local the coronavirus (COVID-19) pandemic had a to the terminus of a domestic conduit that
industry amid the coronavirus (COVID-19) negative impact on consumers. The regulator carries gas from Hassi R’Mel and other fields.
pandemic. Earlier, Egypt cut the price of would need to impose a price ceiling if price On the Spanish side, it is connected to the
natural gas for the industrial sector to $4.50 margins were not lowered. Almería-Albacete line.
per 1mn btu. Yilmaz said that the EPDK had called on
companies to take the required steps.
The collapse in oil prices that came with Petrofac extends contract
Court issues fines for oil the arrival of the pandemic and its negative with Basrah Oil
impact on energy demand from locked
refinery explosion in 2016 down industry and consumers is a boon for Petrofac’s engineering & production services
Turkey in that the country is almost entirely
The magistrate’s court in Haifa, Israel, issued dependent on imports to meet its energy division (EPS) has secured a further six-
on June 1 a ILS1.2mn ($335,000) fine on the demand, but consumers, struggling amid the month contract extension with Basrah
Bazan Group oil refining and petrochemicals fragile Turkish economy following last year’s Oil Company (BOC) for its long-standing
company for negligence, pollution and recession, will want to see that translate to Iraq Crude Oil Export Expansion Project
violation of permits in connection with a gains in their pocket. (ICOEEP).
massive fire that sent toxic black clouds The Erdogan administration is going all The confirmation of the contract extension
floating over the Haifa Bay for several hours in out to achieve a consumer-spending-driven is recognition of Petrofac’s successful
late December 2016. bounceback from the recession and the seven-and-a-half-year track record of safe
The court also handed out fines of between damage wrought by the pandemic effects. and efficient delivery and ability to sustain
ILS30,000 and ILS50,000 ($8,600 to $14,350) and improve export levels as incumbent
each to three managers — Yariv Gratz, Tsachi operations and maintenance service provider.
Shapira and Yaron Ovadia — who admitted to Sonatrach raises stake in The facility, which is one of the largest
charges against them within the framework of export terminals in the Gulf and handles
mediation and a plea deal. Medgaz pipeline to 51% around 50% of Iraq’s crude oil exports, is
The blaze, which took more than a day located 37 miles (60 km) offshore the Al Fao
to extinguish, sent bright orange flames and Algeria’s national oil company (NOC) Peninsula in Southern Iraq. It comprises a
thick black smoke billowing into the air above Sonatrach has become the majority central metering and manifold platform and
the northern port city and threatened other shareholder in Medgaz, the operator of a four Single Point Moorings which facilitate oil
installations at the large industrial complex. natural gas pipeline across the bed of the exports on to awaiting crude carrier tankers.
Mediterranean Sea, through its acquisition of Mani Rajapathy, managing director, EPS
a stake in the link from CEPSA (Spain). East, said: “We are delighted to be awarded
Fuel prices drop to a record statement dated May 31, saying that it had this further contract extension in Iraq by our
Sonatrach confirmed the purchase in a
long-standing client BOC. During this current
low in Tanzania arranged to buy 19.1% of CEPSA’s stake in challenging period for operations we have
continued to work well together, improving the
Medgaz, equivalent to 8.04% of total equity
Tanzania’s retail and wholesale prices for in the pipeline. This purchase brought daily export beyond two million barrels. We
the petroleum products, imported through Sonatrach’s holdings in Medgaz up from thank BOC for their consistent support and
Dar es Salaam port, for June have dropped 42.96% to 51%, it explained. look forward to maintaining the best-in-class
compared to prices recorded in May, 2020, “With this acquisition, Sonatrach becomes operation of this important national asset.”
the Tanzanian Energy and Water Utilities a 51% shareholder in the new shareholding Ihsan Ismaael, director-general of BOC,
Regulatory Authority (Ewura) announced on of Medgaz with its historic partner Naturgy commented: “Petrofac continues to be a true
June 2. [Spain] at 49% and thus strengthens its partner to BOC, ensuring uninterrupted
The new retail prices released by the position as a major and reliable supplier and record exports. We appreciate their
regulator which takes effect from Wednesday, of Algerian gas to importing customers to commitment, particularly during this recent
June 6, shows cap price for a litre of petrol Europe, in particular the Iberian Peninsula period, and congratulate them for hitting new
has decreased by TZS348, or 18.65%, while through the Medgaz gas pipeline,” the export highs.”
the price for diesel has fallen by TZS300, or company said.

P18 www. NEWSBASE .com Week 22 04•June•2020