Thu, Aug. 25, 11:10 AM
- Western partners in the Nord Stream 2 gas pipeline extension to Europe are examining funding alternatives after Poland's cartel office recently blocked its clearance, Reuters reports.
- Gazprom's (OTCPK:OGZPY) five Western joint venture partners - Royal Dutch Shell (RDS.A, RDS.B), Austria's OMV (OTC:OMVJF), France's Engie (OTCPK:ENGIY) and Germany's Uniper and Wintershall - pulled out of the financing to avoid a drawn-out battle but vowed to help keep the project alive, saying Europe's gas production was declining and wanting to secure a share of future business.
- Reuters reports that the most likely options now could be to dilute current rights as equity participants to put the JV out of the Polish agency's reach, raising bank debt, or issuing loans to Gazprom with higher interest; to help with cash, partners could commit to volumes and pay up front when the gas is put into the pipeline.
- Opponents say Nord Stream 2 could tie Europe indefinitely to Russia at a time when gas sources are plentiful; U.S. VP Biden today called the pipeline a "bad deal" for Europe.
Fri, Aug. 12, 12:58 PM
- Gazprom (OTCPK:OGZPY) says it will build the proposed $11B Nord Stream 2 gas pipeline from Russia to Germany on its own after a joint venture with five European partners fell apart over pressure from Poland’s anti-monopoly watchdog.
- Altough the pipeline is not set to go through Poland or Polish waters, Gazprom needed the Polish watchdog’s approval to sell shares in the JV to its partners, some of which have assets in Poland; the regulator objected to the pipeline on the grounds that it would cement Gazprom’s already dominant position on the European gas market.
- All six partners - Gazprom plus Royal Dutch Shell (RDS.A, RDS.B), Austria's OMV (OTC:OMVJF), France's Engie (OTCPK:ENGIY), and Germany's Uniper and Wintershall - say the pipeline project would still move forward despite the decision.
Fri, Aug. 5, 7:59 AM
- Duke Energy (NYSE:DUK) has invited Brookfield Asset Management (NYSE:BAM), French utility Engie (OTCPK:ENGIY) and electricity generator China Three Gorges to submit binding bids for its Latin American power assets, Bloomberg reports.
- DUK has said it hopes to sell ~4,400 MW of generating capacity in Central and South America, which could fetch ~$2B; binding offers for the assets reportedly are due by end of this month.
- CEO Lynn Good tells Bloomberg that DUK has started a detailed due diligence process with a smaller group of potential buyers and aims to announce a deal by year-end.
Tue, Jun. 28, 2:29 PM
- Statoil (STO +3.3%) must not attempt to scale back existing labor agreements if it wants to prevent a strike by Norwegian oil and gas workers beginning July 2, says the Industri Energi union, which represents two-thirds of the workers that would strike.
- Three unions said yesterday that 755 Norwegian workers on seven oil and gas fields operated by STO, Exxon Mobil (XOM +1.2%) and Engie (OTCPK:ENGIY) will strike unless a deal on wages and other working conditions is agreed; Reuters says the fields account for ~18% of Norway's combined output of crude oil, natural gas and natural gas liquids.
- XOM and Engie have said a conflict would cut output at the fields they operate, while STO has declined to comment on all aspects of the negotiations.
- Crude oil prices today are ~3% higher, bouncing off their Brexit-fueled selloff, and the threat of the Norway strike is said to be one of the causes.
- ETFs: USO, OIL, UWTI, UCO, DWTI, SCO, BNO, DBO, DTO, USL, DNO, OLO, SZO, OLEM
Wed, Jun. 8, 4:59 PM
- The Gazprom-led (OTCPK:OGZPY) consortium has issued the first major tender for its $11B Nord Stream-2 natural gas pipeline project, which could double supplies of Russian pipeline gas across the Baltic Sea to Western Europe, WSJ reports.
- The estimated $1B-plus tender for the pipe-laying contract has been sent to interested contractors, and bids will be evaluated by the consortium on June 13, according to the report.
- The JV building the project is 51% owned by Gazprom, while Royal Dutch Shell (RDS.A, RDS.B), E.ON (OTCQX:EONGY), OMV (OTC:OMVJF) and BASF/Wintershall (OTCQX:BASFY) each own 10% and Engie (OTCPK:ENGIY) has a 9% stake.
- The existing Nord Stream pipeline has been criticized because it allows Russia to circumvent transit countries, such as Ukraine and Poland; the European Union is skeptical about the new project on antitrust grounds because Gazprom would own all the gas to be transported through the infrastructure.
Wed, May 18, 10:58 AM
- Oil demand in 2016 will stay strong and support crude prices, but the market is unlikely to rebalance by year-end, Total (TOT -0.1%) CEO Patrick Pouyanne tells a French Senate committee.
- The CEO sees global oil demand at ~1.4M bbl/day but will not rebalance completely by the end of the year; the International Energy Agency said in its May forecast that 2016 global oil demand growth was broadly unchanged at 1.2M bbl/day.
- Pouyanne also says plans to ban imports of U.S. shale gas to France may be unworkable, noting that the gas is liquefied in the U.S., and shale and conventional gas are mixed together in pipelines and cannot be separated.
- France's Energy and Environment Minister said this month that she would examine ways to ban imports of shale gas, and has asked Electricite de France (OTC:ECIFF) and Engie (OTCPK:ENGIY) to import only conventional gas.
Fri, May 13, 7:52 AM
- Petrobras (NYSE:PBR) says it has entered exclusive talks with Brookfield Asset Management (NYSE:BAM) about a potential sale of natural gas pipeline unit Nova Transportadora do Sudeste.
- Reuters had reported earlier that BAM offered 18B reais ($5.2B) to buy NTS, trumping rival bids from the likes of Spain's Gas Natural Fenosa (OTCPK:GASNY), France's Engie (OTCPK:ENGIY) and Japan's Mitsui (OTCPK:MITSY).
- A sale of NTS could give a boost to PBR, which is relying on asset sales and cost cuts to reduce a $130B debt burden.
- Now read Petrobras reports Q1 net loss of 1.25B reais
Wed, May 11, 12:10 PM
- Analysts say the recent spate of investments in renewable energy by the likes of Exxon Mobil (XOM -0.9%) and Total (TOT +0.5%) shows the supermajors recognize the potential for growth in low-carbon sources of energy, but it is too early to know if the moves represent a broader push by oil companies at large to diversify their clean energy holdings.
- XOM last week unveiled a partnership with FuelCell Energy (FCEL -0.9%) to cut the cost of cutting emissions from new and existing fossil fuel plants, Enbridge (ENB -0.5%) yesterday said it would pay $218M for stakes in offshore wind farms, while Total announced a $1.1B deal on Monday to buy battery maker Saft Groupe, complementing its 2011 purchase of a majority stake in solar-panel maker SunPower Corp.
- Oil companies are not the only traditional energy players pushing into clean power: France's Engie (OTCPK:ENGIY) said this week it was buying an 80% stake in California storage company Green Charge Networks.
- Still, the investments are tiny by petroleum industry standards: TOT’s $1.1B deal to buy Saft represents a tiny fraction of its $120B market value, and ENB’s $218M deal equals less than 1% of its 2015 revenue.
Fri, May 6, 5:03 PM
- The U.S. increasingly views the Nord Stream-2 gas pipeline project, which would double the volume of gas shipped directly from Russia to Germany, as a threat to national security, according to a senior U.S. energy envoy.
- Many European Union governments complain that the project increases dependency on Russia, which supplies around a third of the EU's gas.
- The Nord Stream-2 consortium, which includes Gazprom (OTCPK:OGZPY), E.ON (OTCQX:EONGY), Royal Dutch Shell (RDS.A, RDS.B), Engie (OTCPK:ENGIY) and others, says the project is purely commercial and that Russian pipeline gas is cheaper than liquefied natural gas.
- The envoy - at a meeting in Washington this week of the U.S.-EU energy council - dismisses the argument, saying it does not make commercial sense for Europe to "double down on physical infrastructure that is not accessible to new markets."
Wed, Apr. 6, 8:29 AM
- French utility Engie (OTCPK:ENGIY) and Japan's Marubeni (OTC:MARUF) are among several suitors preparing to bid for Chevron's (NYSE:CVX) Asian geothermal energy blocks valued at ~$3B, Reuters reports.
- The potential buyers, which include southeast Asian power companies, are attracted by the opportunity to gain control of large blocks of geothermal assets located in Indonesia and the Philippines, according to the report.
- Indonesia has estimated a geothermal potential of 27,700 MW, the highest in the world, but its current installed capacity was less than 5% of the potential, says Wood Mackenzie's top power analyst.
- Two CVX subsidiaries operate geothermal projects in Salak and Darajat fields in west Java with a capacity to generate nearly 650 MW of electricity.
- Now read Chevron: My investment thesis was busted
Thu, Feb. 25, 9:42 AM
- Petrobras (PBR +2.1%) should fetch $5B-$6B from the sale of its Nova Transportadora do Sudeste natural gas pipeline unit in southeast Brazil, Reuters reports, citing the Valor Economico newspaper.
- Potential bidders include Canada's Brookfield Asset Management (NYSE:BAM), China National Petroleum (NYSE:PTR), and a joint venture between the Canadian Pension Plan Investment Board and Engie (OTCPK:ENGIY), according to the report.
- Bids are said to be expected by a Tuesday deadline.
Thu, Feb. 25, 7:59 AM
- Dynegy (NYSE:DYN) says it is partnering with P-E firm Energy Capital Partners to acquire French utility Engie's (OTCPK:ENGIY) U.S. power plants for $3.3B.
- The purchase will be made through a newly formed Atlas Power joint venture with Energy Capital.
- DYN, which will own 65% of the joint venture, says the acquisition would add 8,731 MW to its generation capacity, taking the total to 35K MW across PJM, ISO New England, ERCOT and other regulated power markets.
- Energy Capital will buy $150M of DYN stock at $10.94/share, which will raise its holding in the company to ~15%.
- Separately, Engie (formerly GDF Suez) reported a FY 2015 net loss of €4.6B from a €2.4B net profit in 2014.
- Earlier: Dynegy reports Q4 results (Feb. 24)
Mon, Feb. 8, 11:16 AM
- Engie (OTCPK:ENGIY) reportedly plans to sell €15B-€20B worth of assets during 2016-18, including €7B ($7.8B) in the short term.
- French newsletter La Lettre de l'Expansion says the company plans to sell €2.5B-€3B worth of E&P assets, €2B-€3B of coal-fired power plants, €5B worth of U.S. plants, and various other non-strategic assets worth €3B-€5B.
- Engie also plans to speed up its "Perform" cost-cutting plan, aiming for €2.8B worth of cost cuts over 2016-18, up from €1.9B during 2012-15, according to the report.
Thu, Jan. 14, 9:19 AM
- Engie (OTCPK:ENGIY) appoints Isabelle Kocher as its new leader effective in May, replacing longtime CEO Gérard Mestrallet and becoming the first woman to lead a company in the Paris CAC 40 stock index.
- Kocher was appointed deputy CEO and COO in October 2014 as part of a succession plan for Mestrallet, who has led the company (formerly GDF Suez) for two decades.
- Mestrallet also confirms Engie's 2015 earnings guidance and says the copany plans to speed up its asset rotation in 2016.
Oct. 28, 2015, 9:14 AM
- Cheniere Energy (NYSEMKT:LNG) signs a five-year deal to sell liquefied natural gas to France's Engie (OTCPK:ENGIY), a step that increases the importance of France as a market for U.S. fuel.
- The U.S. company will ship as many as 12 cargoes/year to France’s Montoir-de-Bretagne regasification terminal beginning in 2018 at prices linked to northern European indexes.
- Cheniere’s Corpus Christi liquefaction plant currently under construction will be the primary source for supply under the contract.
- Cheniere also has agreements with Electricite de France for as many as 50 cargoes/year from its Sabine Pass, La., export plant for delivery through 2018; Cheniere plans to ship the first U.S. Gulf Coast cargo from Sabine Pass in January.
Sep. 11, 2015, 12:18 PM
- Eastern European nations set to lose billions of dollars in natural gas transit fees criticize the latest agreement between western European companies including Royal Dutch Shell (RDS.A, RDS.B), Germany’s EON (OTCQX:EONGY) to Paris-based Engie (OTCPK:ENGIY) for a pipeline deal with Russia's (OTCPK:OGZPY) that will circumvent Ukraine.
- The companies signed an agreement last week to expand Nord Stream by 55B cm/year, which would double its capacity to nearly 30% of current EU demand; Ukraine is set to lose $2B/year in transit fees while Slovakia could lose hundreds of millions of euros.
- Russia now ships about one third of its Europe-bound gas via Ukraine, down from two-thirds in 2011 when the Nord Stream pipeline under the Baltic Sea started supplying Germany directly; Nord Stream-2 is set to start deliveries to Europe in 2019, when the current agreement between Russia and Ukraine on gas transit ends.
Currently, there's no company description for ENGIY.
Industry: Water Utilities