Page 16 - EurOil Week 26 2022

EurOil NEWS IN BRIEF EurOil

project, with the goal of having the new Hungary not willing to negotiate EBRD confirms €300mn
1,200 MW blocks up and running by 2030.
However, the €12.5bn project, the largest over Russian gas embargo credit line to Moldova for gas
investment on record, may suffer further
delays, according to local media. Hungary’s government is not even purchases
Hungary’s National Atomic Energy Office willing to negotiate over a possible Russian
(OAH) has yet to issue the implementation gas embargo, as the security of energy The EBRD announced that it is lending
licence for the project due to security reasons. supply in Hungary cannot be a matter of Moldova €300mn “to boost its energy
The biggest concern is that the site lies on an compromise, Minister of Foreign Affairs security by acquiring strategic gas reserves
active fault line. The government, which has and Trade Peter Szijjarto said in a statement to supplement those currently provided by
for long dismissed the idea, now says that the on June 27 before a meeting of European Russia through Ukraine”.
lifespan of the four existing blocks could be Union energy ministers in Luxembourg. The loan is for on-lending to the state-
extended by 10-20 years. Szijjarto said that he has a clear mandate owned energy trader JSC Energocom to
Szijjarto is scheduled to meet Rosatom’s and is not even willing to negotiate a procure gas on European Union hubs, the
CEO in Istanbul on Friday. gas embargo, as in Hungary this would bank said.
“practically mean the economy and the “The loan will finance up to one-fifth
country becoming inoperable”. of Moldova’s planned gas imports for
RWE stops sale of Czech compared the oil embargo to an atomic 2022, which are vulnerable to potential
Hungarian leaders have occasionally
interruption as a result of the war on
gas storage facilities after bomb and a ban on gas imports to a Ukraine,” the EBRD says – sketching
hydrogen bomb, referring to the devastating
the worst-case scenario of a gas supply
bidders pull out impacts on the country’s households and disruption.
Moldova’s government repeatedly said
economy.
The German company RWE has suspended Earlier, Szijjarto spoke of his frustration that it would rather not use that credit line,
the sale of gas storage facilities in Czechia, that Hungary had been portrayed as a and stick with the five-year contract with
after the semi-state energy company CEZ country reluctant to punish Russia for its Gazprom that provides for better (although
withdrew from a bid and the only bidder war in Ukraine, pointing to the fact that high, in absolute terms) prices compared to
remaining in the tender was the Energy and Russia currently supplies 65% of Hungary’s what the country might have to pay on the
Industrial Holding (EPH) of billionaire Daniel oil and 85% of its gas supplies. European spot market.
Kretinsky, the Hospodarske Noviny (HN) The Orban government, seen by many In other words, it is the affordable gas
daily reported. as the closest ally of Vladimir Putin, has and not the money that Moldova needs,
The six storage tanks, which can hold 2.7bn blocked the European Union’s plans to even if the €300mn loan indeed provides
cubic metres of gas, which is equivalent to impose a full embargo on Russian oil. After a safety net for the dramatic scenario of
Czechia’s consumption for two winter months, weeks of haggling, pipeline delivery was an energy crisis prompted by Gazprom
are being operated by its subsidiary RWE Gas not included in the sixth round of sanctions terminating gas supplies.
Storage CZ, the largest operator of gas storage against Russia. Most of the money made available by
tanks in the country. Hungary supports the European the EBRD may never be used, under the
According to HN, RWE first received Union’s proposal to create common energy optimistic scenario.
positive feedback from potential buyers in procurement, but participation in this can “A €200mn emergency tranche will be
Europe, such as Hungarian state company only be voluntary, he added. used in case of supply disruption, while
MVM and the Czech KKCG group of The minister noted that there are reports a further €100mn will be used to create
billionaire Karel Komarek, however, neither of serious technical difficulties concerning a strategic gas reserve to be stored in
of them submitted a bid. German daily gas transfer lines from Russia to Western Romania or Ukraine to avoid seasonal price
Handelsblatt also mentioned Austria’s OMV Europe. spikes and improve energy security,” the
and Germany’s Wintershall as potential Hungary expects the European EBRD explained.
bidders that could be interested in the Commission to examine if this is indeed
investment. RWE reportedly expected the sale caused by operating equipment previously
to generate €500mn. sent to Canada for maintenance not being Serbia sets short-term
As noted by Jiri Gavor, the managing returned, he said.
director of the consulting company ENA, Fielding a question, Szijjarto said maximum retail fuel prices
cancelling the sale is a logical step in a Hungary, like all other member states,
situation where only one bidder remains. has an emergency scenario in place, but Serbia’s trade ministry said on June 24 it
“EPH Group is known for its specialisation currently, energy supply is secure. has set maximum retail prices of petroleum
in low-priced acquisitions. It has never Russian gas is flowing without products that will be valid until June 30.
purchased for a high price, quite the opposite,” interruption to Hungary, and the level The price of fuel increased in the
Gavor told HN. of gas stockpiled is already above 39% previous months amid the energy crisis
“The tender has been suspended and we equivalent to 2.7 bcm, or three-quarters following the war in Ukraine. The fuel
are waiting to see what happens next,” HN of the mandatory amount of gas reserves prices were capped in other countries in the
quoted its source as saying. Neither RWE required by the EU. region.
nor EPH have officially commented on the Hungary’s annual gas consumption is In this period, diesel will be sold at a
negotiations. around 9bcm. price of RSD212 (€1.8) per liter, while the
price for 95-octane petrol is set at RSD201
per liter, the Serbian Ministry said in a

P16 www. NEWSBASE .com Week 26 30•June•2022