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Cheap Russian oil, high margins amounting to an estimated 650mn cubic Estonian TSO says work
metres in western Poland, PGNiG said on
propel Hungary’s MOL to record August 4. on Paldiski LNG terminal
The discovery will help improve Poland’s
earnings in Q2 energy security, the company said. Poland connection going according to
is about to face a crisis winter with possible
The net income of Hungarian oil and gas giant shortages of gas and coal after Russia’s attack plan
MOL surged 40% year on year to a record on Ukraine disrupted supplies and inflated
HUF240bn (€606mn) in the second quarter prices. The construction of the pipeline connection of
as downstream margins widened to new highs The deposit in Sieroslaw, 20 km west of the liquefied natural gas (LNG) terminal near
as the company reaped the benefit of cheap Poznan, is expected to produce approximately Estonia’s port of Paldiski are moving forward
Russian gas, while the price of fuel remains 40 mcm of nitrogen-rich gas per year, which without a snag, Estonian transmission system
elevated outside Hungary. MOL’s share price in terms of high-methane gas is equal to 32 operator (TSO) Elering said, BNS, a Baltic
had rallied 3% in the previous three days to mcm of fuel, PGNiG said. news agency, announced on August 3.
over HUF3,000 as investors expected CEE’s The company now plans more exploration “The welding of the pipe sections has
leading oil company to post impressive in the area, hoping to find more commercially started in the area on land, directional drilling
earnings. viable deposits. through the klint has been successfully carried
Total revenue rose 76% to HUF2.49 PGNiG is about to merge with another out, a tap node for the connection pipeline
trillion, while total operating expenses Polish state-run energy company, PKN Orlen, is being built on the territory of the Elering
increased just 67% to HUF2.1 trillion later this year. compressor station. The construction of the
and operating profit jumped 160% to The ompany’s stock fell nearly 2.5% trench in the sea part of the pipe connection
HUF365.9bn. Basic earnings per share to PLN6.58 (€1.4) on the Warsaw Stock has started and the welding of the pipe
amounted to HUF435 for the period. Exchange on August 4 amid persisting sections is also starting, which is preparation
Clean EBITDA in the April-June uncertainty that 10bn cubic metres of annual for the installation of the sea pipe,” spokesman
period jumped 96% to an all-time high of capacity of its flagship project, the Baltic Pipe for Elering Ain Koster told BNS.
HUF483bn, an increase of 96% y/y and 78% linking Norwegian gas fields to Poland, has According to Koster, the materials
quarter on quarter, of which HUF308bn not yet been contracted in full. critical for construction are available and the
came from the downstream business. This expected deadline for the completion of the
represents an annual 183% growth and is works is still the end of November.
more than 2.5-fold higher than in the previous Bulgaria’s caretaker government As reported by bne IntelliNews, Estonia
quarter. MOL’s downstream unit was boosted will have the capacity to import Liquefied
by refinery margins as high as $50 per barrel, sets up crisis team to tackle Natural Gas (LNG) via a floating terminal
lifted by the $35 spread between the Brent and moored off the Port of Paldiski by November.
Russian crude type Ural. energy sector ‘chaos’ Elering announced in early June that
Upstream clean EBITDA grew 151% y/y to preparations for the construction of the
HUF207bn, up from HUF163 in Q1, driven Bulgaria’s caretaker Prime Minister Gulub pipeline connection of the future Paldiski
by rising oil prices coupled with the impact of Donev said his team has discovered “chaos” LNG terminal, which began in early spring,
an elevated gas price environment. in the energy sector and that he is setting up a reached real construction activity, with TSO
MOL acknowledged that EBITDA from crisis team to tackle it. Elering’s gas infrastructure maintenance and
the consumer services business “collapsed” The energy sector was one of the main construction partner Connecto AS as the
in Q2 due to fuel price regulation in some sources of conflicts between President Rumen main contractor.
CEE countries and because of a retail tax Radev and the former government of Kiril The construction of the connection to
in Hungary. Clean EBITDA of the business Petkov. Radev accused the cabinet of being be built by Elering will be divided into four
line declined 66% y/y to HUF16.6bn, offset responsible for Gazprom’s decision to stop major phases: onshore pipeline from the
partially by the operation of Fresh Corner supplies at the end of April, because Sofia had compression station to the sea, offshore
stores. refused to pay in roubles. pipeline from the coast to the mooring quay,
MOL chairman-CEO Zsolt Hernadi Moreover, Radev was widely expected to the gas equipment on the mooring quay and
pointed to “unprecedented uncertainty” for appoint a caretaker government that could the connection device between the quay and
the whole energy industry in Q2 and said turn the country back to Russia’s orbit, the floating terminal to receive gas from the
MOL’s “number one priority” during the restoring the deliveries from Gazprom. vessel. The length of the connection from the
period was maintaining the security of supply. The crisis team will call tenders for short- compression station to the mooring quay is
“MOL’s businesses suffer from state term supplies of natural gas, Donev said. approximately 1.2 kilometers.
interventions across Central and Eastern Caretaker Energy Minister Rosen Hristov
Europe, putting pressure on our financials and said the situation was critical as the country
operations,” he said, but added that regulatory only has enough natural gas until the end of Croatia’s government lowers
measures are not hindering the company’s September.
investment plans set out in the 2030+ strategy The former government said this was not fuel price cap
that aims to diversify supply. correct, claiming it has already secured a
slot for unloading one tanker of US liquified The Croatian government decided to lower
natural gas (LNG) and agreed the delivery slightly the caps on fuel prices again and to
Poland’s PGNiG announces of six more tankers. However, the caretaker revise them every week depending on the
market situation, it said in a statement.
government would need to secure slots for
650mn cubic metre gas find their unloading as the previous government The prices were previously reduced in July.
had no time, Petkov said.
“We shall be agile and adaptable and, if
Warsaw-listed state-controlled oil and gas necessary, we shall introduce new measures
company PGNiG has discovered a gas deposit every Monday during government conference

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