Natural Gas

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.

Putin gas assault is a survivable test of EU unity

19 Jul 2022

Moscow’s key pipeline to Germany is offline for repairs, stoking fears Russia may cut off all its gas for good. That would mean soaring energy costs and a big economic contraction. But the worst outcome, where Germans hoard gas and splinter the European Union, looks less likely.

Finland’s Uniper hit best seen as defence spending

12 Jul 2022

Helsinki wants Berlin to rescue the ailing German energy group, but limit the hit to Finnish owner Fortum. Germany doesn’t agree. Finns would be better off seeing any dilution from a forthcoming capital hike as part of the cost of de-Russifying. Like the cost of joining NATO.

Capital Calls: Kohl’s future, Aerojet fight

1 Jul 2022

Concise views on global finance: The U.S. retailer walked away from a deal with Franchise Group, leaving it to weather a potential recession alone. Meanwhile, Aerojet CEO's victory against her executive chairman culminates in a board mess.

Saving energy now is an EU no-brainer

28 Jun 2022

The bloc has hiked LNG imports by 50% to replenish storages and cut its Russian gas dependency. But if Moscow turns off the taps, Germany could sink into recession. All the more reason to kick off energy-saving measures this summer and try to curb gas prices by cutting demand.

Putin’s gas shock is acid test of EU unity

27 Apr 2022

In severing Polish and Bulgarian supply, the Russian leader shattered a fragile equilibrium that had seen European energy buyers fund his war. He hopes other EU states will carry on, dividing the bloc. Instead, Europe should backstop the costly process of ditching Moscow’s fuel.

Fertiliser makers face long wait for free lunch

11 Apr 2022

Soaring gas prices are making products of crop nutrient producers like Norway’s Yara and Austria’s Borealis unaffordable for farmers. Subsidising the companies might be the least bad way to avoid a food inflation crisis. Waiting for grains to fail will store up bigger problems.

Tiny Lithuania gives Germany a big gas lesson

11 Apr 2022

The Baltic state stopped buying Russian gas on April 1. The shutdown caps a decade of planning to break Moscow’s grip via liquefied shipments. Its greater needs and lack of import terminals worsen Germany’s pickle. But Vilnius’ roadmap can drastically reduce its travel time.

Time for Europe to break energy sanctions taboo

4 Apr 2022

Alleged Russian atrocities against Ukrainian civilians are set to trigger a harsher EU response. Dependency on Russian oil and gas makes Germany and others reluctant to back a full energy embargo. Taxing hydrocarbon imports is a halfway-house option that still hurts Moscow.

Putin’s gas April fool masks ulterior motives

31 Mar 2022

The Russian president told importers to buy Moscow’s gas in roubles but seems to have devised a way for them not to. The storm in a teacup helps Putin look tough, and Europe’s leaders brace citizens for tough times. It may also have helped Russia sell more gas at higher rates.

Hydrogen’s civil war reveals its winner

31 Mar 2022

The element has a big role in beating climate change. But fans of natural gas-based “blue” hydrogen and its zero-carbon “green” cousin are constantly vying for supremacy. Soaring fossil-fuel prices and energy supply fears after Russia’s Ukraine invasion are handing green victory.

National Grid gas sale has green edge on Macquarie

28 Mar 2022

The $54 bln UK company is selling 60% of its gas pipelines arm to a group led by the Australian finance house. The $13 bln deal has financial benefits for both. But National Grid’s switch to electricity is more immediate than the buyers’ plan to pump hydrogen through the pipes.

EU energy crisis is a 130 bln euro joint problem

17 Mar 2022

That's how much it could cost to wean the bloc off Russian gas, at a time when energy bills are already soaring. States could tax energy companies or draw unused pandemic loans to offer subsidies. Common grants look like a better option.

Gauging the global backlash against Russia

10 Mar 2022

The shockwaves from President Vladimir Putin’s invasion of Ukraine are reverberating around the world. In our Viewsroom podcast, Breakingviews columnists debate the country’s isolation, the impact on Asia, Europe’s plan to wean itself off Russian gas, and the fallout for banks.

EU charts expensive path towards energy freedom

8 Mar 2022

The European Commission wants to lop over 70% off Russian gas use this year by ramping up LNG purchases, green energy and gas storage. It implies Europeans consuming less energy and paying more than feared for what they use. Pooled EU resources may be needed to cushion the blow.

Oil self-sanctioning is unstable weapon for West

3 Mar 2022

Traders and utilities are refusing to buy crude and gas from Russia, even though sanctions allow it. Insofar as this turns up the heat on the Kremlin, U.S. and EU leaders may not mind. The danger is that spiking prices alarm voters and lead to strains in the Western alliance.

How Europe can kick its Russian gas habit

1 Mar 2022

Conflict in Ukraine shows the folly of the continent depending on gas from Moscow. Speeding up renewable energy would help. To get to zero in a decade, however, Europe will also need other sources of gas, more nuclear power, multi-nation coordination and even consumer rationing.

American LNG burns even brighter

24 Feb 2022

Nearly 40% of European gas comes from Russia, and LNG facilities elsewhere are already largely booked. Still, the Russian invasion of Ukraine will boost booming liquefied gas exports. Replacing even part would mean long-term surety for firms like Cheniere itching to grow.

Naturgy split may be less than sum of its parts

11 Feb 2022

The 25 bln euro Spanish power group is putting renewable energy and gas under one roof and fencing off its regulated network business. It could create value if investors see gas as less worthy of a discount than they have in the past. But that’s a pretty big if.

Rishi Sunak bets he’s a good gas trader

3 Feb 2022

The UK chancellor is spending 9 bln pounds to help consumers facing a 50% hike in energy costs. If gas prices fall back by next year, he’ll get most of that back. If they don’t, the state faces a bigger hit. Either way, this package looks too small to prevent a political furore.