Natural Gas

Capital Calls: Rio Tinto, Grocery delivery M&A

9 Dec 2022

Concise views on global finance: After a shambolic process, the $118 bln miner has succeeded in buying out the 49% of Turquoise Hill Resources it doesn’t own; Turkish grocery delivery player Getir gobbles up German rival Gorillas for $1.2 bln.

Eni’s $6 bln Neptune swoop will be a haggle-fest

1 Dec 2022

Italy’s $52 bln oil major may bid for the private equity-backed gas producer. Windfall tax and recession risks make the $10 bln price tag from last year’s mooted IPO unlikely. But Eni’s scope for synergies and need to pivot to gas give owners like CVC scope to hold out for more.

Energy crises speed up the green transition

22 Nov 2022

In 2022, war and power shortages have led to more fossil fuel use. But they also act as a catalyst for the rollout of renewable energy. In this edition of The Exchange podcast, ex-Snam boss Marco Alverà tells George Hay how Europe’s leaders can capitalise on this dynamic.

Capital Calls: Uniper

3 Nov 2022

Concise views on global finance: The German utility’s 40 bln euro loss for the first nine months of 2022 has turned its equity negative and implies a much larger bailout.

Texas’s worthless gas plays to Russian power

1 Nov 2022

The Permian is pumping nearly half of America’s oil – and with that a gas byproduct. As a result, prices are cheap or even negative. Building new infrastructure takes time and investment. American drillers will accommodate when profit exist. By then, the crisis will be over.

Europe’s industrial mess has protectionist endgame

26 Oct 2022

Manufacturers like Germany’s $42 bln BASF face a toxic brew of high energy prices at home and rising risks in China. That implies a freeze on new investment, and a loss of market share to foreign players. To stop that, European states may ultimately intervene with tariffs.

Time for Europe to tame its energy cravings

19 Oct 2022

After paying through the nose to fill its gas storage reserves to 92%, the bloc is seeking to secure more affordable fuel. Measures like curbing price volatility, club purchases or flexible caps will be no panacea. While supply is tight, curbing demand is the key.

Europe’s energy crisis nears winter of discontent

18 Oct 2022

Germany, Italy and others have scrambled to replace Russian gas and pipeline attacks have become a concern. The Oxford Institute for Energy Studies’ Jack Sharples tells The Exchange podcast Europe must learn to live with less power. Next year may be even more challenging.

Total’s Russia foot-dragging is investor problem

18 Oct 2022

The French energy giant owns a stake in gas group Novatek, and is in theory entitled to a $430 mln dividend. CEO Patrick Pouyanné won’t say whether he’s selling. He may hope that long-held Kremlin ties can secure a clean exit, but the uncertainty is a shareholder concern.

Abu Dhabi would be a logical owner for Gunvor

4 Oct 2022

ADNOC, the emirate’s huge oil company, is interested in the privately held commodities trader. Gunvor’s valuation involves guesswork, and it used to be owned by a target of U.S. sanctions. But the UAE could use the group’s roster of gas client relationships, and it has the cash.

German energy bailout belatedly outclasses Europe

30 Sep 2022

Berlin will borrow 200 bln euros to help consumers cope with rocketing energy prices. It’s not the first state to go for a shock and awe approach, but Germany’s ample fiscal space gives it way more scope to go big. Unlike the UK, it can also do so without spooking investors.

Uniper’s new bailout mixes scars and consolations

21 Sep 2022

Germany’s 8 bln euro capital injection heavily dilutes the stricken energy group’s investors and hands main shareholder Fortum a big loss. The Finnish group does gain from exiting the mess, and Berlin might one day profit from the rescue. But neither side will be celebrating.

Europe can shrug off Putin’s Chinese gas Plan B

14 Sep 2022

With exports to its key European market shrinking fast, Moscow hopes to hike gas exports to the People’s Republic. But last year these were just 7% of EU sales, and logistics and sanctions complicate the shift. It need not deter Europe’s talk of a Russian gas price cap.

Europe energy fallout will cascade down the years

12 Sep 2022

The gas crisis is a long-term problem which will make the region poorer and less competitive while saddling it with higher public debt. Dealing with this as well as high inflation will cause further political ructions which will cascade down the years, says Hugo Dixon.

Norway gas lifeline for Europe is the smart move

9 Sep 2022

The staunch NATO ally supplies 25% of the European Union’s gas needs and nearly half Britain’s. A trebling of oil cash and record profit at energy giant Equinor give Norway scope to cut the EU some slack on gas prices. The discount size is less important than the gesture.

The consequences of Europe’s energy crisis

8 Sep 2022

As Russian President Vladimir Putin cuts off gas through a key pipeline, Breakingviews columnists discuss the response from UK and European governments, how the shutdown could have some longer-term benefits, and when Russia will feel the squeeze of lost revenue.

Tough love is best fix for energy cash crunch

7 Sep 2022

Utilities and power traders face a $1.5 trln surge in collateral demands due to swings in gas futures. The answer could be bailouts, halts in trading and collateral tweaks. Yet radical changes may increase risk. And government help, if properly priced, needn’t be a freebie.

EU has ways to learn to live with less gas

6 Sep 2022

The closure of a key Russian pipeline leaves Europe facing a 20% shortfall in fuel supply. Measures to cut demand like lower temperatures in homes and incentives for companies to use less energy may soften the blow. More gas-dependent nations like Italy must now work harder.

Russia is giving German industry a slow puncture

27 Jul 2022

Industrial users of gas are in the firing line as Moscow halts supply. Companies like BASF face a hit from higher input costs and energy rationing, rather than a Uniper-style bailout. The problem for Berlin is that sustained high prices could make production head elsewhere.

Berlin spreads pain in 15 bln euro Uniper bailout

22 Jul 2022

That’s how much equity and debt the government may pump into the gas importer driven to near-bankruptcy by reduced Russian supplies. Diluted shareholders, Finnish owner Fortum, and German taxpayers will share the burden. So will consumers who will pay higher prices for gas.