Page 13 - DMEA Week 05 2022

DMEA NEWS IN BRIEF DMEA

COMPANIES SUPPLY Iranian gas stoppage was a consequence of
unpaid bills for imports.
Taqa Arabia plans to IPO in Iranian gas to Turkey on the as a consequence of the Turkish lira’s collapse
Energy prices have risen sharply in Turkey
2023 up after stoppage against the dollar. The lira lost 44% against the
USD last year.
Taqa Arabia, a subsidiary of Egypt’s Citadel Gas flows to Turkey from Iran have reportedly BNE
Holding, is planning an initial public offering returned to 50% of the daily contractually
(IPO) of its shares on the Egyptian Stock agreed level following the stoppage Renergen signs LNG
Exchange next year, Al Mal newspaper announced at the start of the fourth week of
reported company CEO Pakinam Kafafi January. supply deal with Ceramic
saying. According to Kafafi, her company’s Turkey’s pro-government Daily Sabah
choice of investment bank to handle the publication quoted “Turkish sector sources” Industries
investment mandate is limited between EFG- as giving the update, while also stating that
Hermes and HSBC. repairs to the Iran-Turkey gas pipeline on the South Africa’s Renergen announced on
This would be Citadel Holding’s second Iranian side of the countries’ border have been February 3 that it had signed an agreement
shot at floating a minority stake in Taqa postponed until the spring. with Ceramic Industries, a subsidiary of Cape
Arabia after a previous attempt touted in The sources were further cited as saying Town-based Italtile, on supplies of LNG.
2019 was shelved due to prevailing market that the current gas volumes and pressure In a statement, Renergen said it was set to
conditions in the aftermath of the coronavirus were not in line with contractual conditions. begin delivering up to 800 gigajoules per day
(COVID-19) pandemic. Iran supplies around 16% of gas imported of LNG to Ceramic in the first quarter of 2022.
During the course of the current year, by Turkey, with some of the volumes directed The five-year term of the supply agreement
Taqa Arabia intends to invest EGP1.5bn to power plants for the production of will begin on the date of the first shipment,
($95mn) in various projects in Egypt to be electricity. and the buyer will have the option to renew
funded from internal sources. It plans to The interruption to Iranian gas flows the deal for two more five-year periods, it
establish between 50-60 dual-use natural caused the authorities to apply substantial reported.
gas and gasoline fuelling stations in various restrictions to electricity use by producers in Renergen went on to say that it had agreed
parts of the country, in addition to investing Turkey’s many industrial zones. to supply Ceramic with LNG from the first
EGP500mn to build refined petroleum On January 28, Turkey’s state-controlled stage of its LNG plant on certain conditions.
product warehouses in Egypt’s Delta region pipeline corporation BOTAS said that the On the one hand, it said, fulfilment of the
over the next two years. reduction in the supply of natural gas to agreement is contingent upon the successful
Established in 2006, TAQA Arabia is a industrial facilities, including power plants, commissioning of Phase One itself. On
leader in energy distribution across Egypt, would from the start of this week be set at the other hand, it said, Renergen must
serving more than 1.4mn consumers with 20% compared to 40% last week. commission the facilities needed to store and
their daily energy needs. TAQA Arabia Turkey is almost completely reliant on supply LNG at the buyer’s site, while the buyer
invests, installs, constructs and operates energy imports from Russia, Azerbaijan and must finish connecting its equipment to the
energy infrastructure including gas Iran. Renergen battery limit of the facility at its site.
transmission and distribution, conventional Some Turkish manufacturing companies, The statement did not reveal the value of
and renewable power generation and including car parts maker Ege Endustri, the deal. However, it said that Ceramic had
distribution as well as marketing oil products cardboard manufacturer Kartonsan and agreed to buy the LNG at a fixed priced that
and lubricants throughout several fuel stations defence automotive parts maker Katmerciler would rise each year at a rate linked to the
across the country. halted production due to the energy cuts, consumer price index (CPI).
BNE Daily Sabah also reported. Stefano Marani, the CEO of Renergen,
Turkish President Recep Tayyip Erdogan expressed satisfaction with the new contract.
on January 27 refuted speculation that the “We are proud to be associated with Ceramic

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