Monday, December 5 2022 Sign In   |    Register
 

News Quick Search


 

News


Front Page
Power News
Gas News
Today's News
Yesterday's News
Week of Dec 05
Week of Nov 28
Week of Nov 21
Week of Nov 14
Week of Nov 07
By Topic
By News Partner
News Customization
Feedback

 

Pro Plus(+)


Add on products to your professional subscription.
  • Energy Archive News
  •  



    Home > News > Gas News > News Article

    Share by Email E-mail Printer Friendly Print

    Germany considering nationalization of Uniper gas company


    September 20, 2022 - Deutsche Welle

     

      Uniper's situation has looked increasingly vulnerable following the closure of the Nord Stream 1 pipeline. Previously, Germany's largest importer of natural gas said soaring energy prices had hit the company hard.Germany is nearing a provisional agreement to nationalize energy company Uniper amid the ongoing fallout from Russia's invasion of Ukraine, according to reports released by Bloomberg and later by other German media. A spokesperson for the company on Tuesday said parties involved in discussions were looking at a possible capital injection that would mean the German government taking a significant majority stake in the ailing gas importer. Uniper's largest shareholder currently is the Finnish state-owned energy company Fortum. News agency Reuters cited unnamed sources familiar with the negotiations as saying that Fortum's exit from Uniper's ownership structure would be a part of the rescue package. Reuters also reported that a finalized deal would likely be announced as soon as Wednesday. Consequences of Russia's invasion of Ukraine Uniper's situation has looked increasingly vulnerable ever since Russia's invasion of Ukraine; the German government effectively bought a 30% stake in the company in July in exchange for a capital injection. At that time, German Chancellor Olaf Scholz said Uniper was in "big trouble" owing to the worsening energy crisis. The company was one of those involved in building the Nord Stream 2 pipeline, which was not activated after construction and is frozen indefinitely as part of the package of sanctions imposed in response to the invasion. But the situation for Uniper became trickier still earlier this month. Russian energy giant Gazprom said gas supplies to Western Europe via the Nord Stream 1 pipeline had completely stopped due to equipment issues, giving no time frame on when it would resume activities. With winter fast-approaching, the ailing energy importer has been burning through cash reserves sourcing gas on the expensive spot market after Moscow slashed flows to Germany, also trying to fill up storage facilities in anticipation of winter shortfalls. Last month, Uniper said high energy prices and a threat by Russia to cut gas supplies had hit the Düsseldorf-based company hard. It also warned a tough winter lay ahead. jsi/wmr (dpa, Reuters)


      The views expressed in content distributed by Newstex and its re-distributors (collectively, "Newstex Authoritative Content") are solely those of the respective author(s) and not necessarily the views of Newstex et al. It is provided as general information only on an "AS IS" basis, without warranties and conferring no rights, which should not be relied upon as professional advice. Newstex et al. make no claims, promises or guarantees regarding its accuracy or completeness, nor as to the quality of the opinions and commentary contained therein.

    TOP

    Other Articles - International


    TOP

       Home  -  Feedback  -  Contact Us  -  Safe Sender  -  About Energy Central   
    Copyright © 1996-2022 by CyberTech, Inc. All rights reserved.
    Energy Central® and Energy Central Professional® are registered trademarks of CyberTech, Incorporated. Data and information is provided for informational purposes only, and is not intended for trading purposes. CyberTech does not warrant that the information or services of Energy Central will meet any specific requirements; nor will it be error free or uninterrupted; nor shall CyberTech be liable for any indirect, incidental or consequential damages (including lost data, information or profits) sustained or incurred in connection with the use of, operation of, or inability to use Energy Central. Other terms of use may apply. Membership information is confidential and subject to our privacy agreement.