News from HAEE | July 2018
News from HAEE | July 2018

Green light for DESFA sale

The agreement for the sale of DESFA’s 66% stake was signed on July 20th, 2018, between HRADF, Hellenic Petroleum SA and SENFLUGA Energy Infrastructure Holdings S.A., the company set up by the Preferred Investor consortium comprising of the companies Snam S.p.A., Enagás Internacional S.L.U. and Fluxys S.A., for a total bidding offer of €535 million.

DESFA runs a network for transporting gas from the Greek-Bulgarian and Greek-Turkish borders via a 1,459-km (907-mile) pipeline. It also has a liquefied gas terminal facility on an islet off Athens.

 

Decline in renewables investment is a warning signal for clean energy transitions  

Global investment in renewable energy declined by 7% in 2017, its largest fall in over 15 years, as reported in the IEA’s World Energy Investment report.

Although, part of the drop-off was due to falling costs that made renewable sources like solar PV more affordable than ever, the investment decline still represents a warning.  

Renewables are an essential component of a sustainable energy future, and they will have to grow quickly to meet the world’s climate change, clear air and energy access goals. As projected in the IEA Sustainable Development Scenario, new renewables' generation needs to rise rapidly and global investment in renewable electricity needs to almost double to meet these goals, to nearly USD 550 billion per year by 2030.

 

DEPA buys out Shell's 49 

Greece's state-controlled DEPA gas company buys out Shell's 49 per cent stake in a domestic gas supplier, Attiki Gas Supply Company and a gas distributor in Athens and becomes the sole stakeholder in the two companies.

The deal between DEPA and Shell is worth 150 million euros and is part of a scheme under Greece's latest international bailout, which says that Athens needs to eliminate potential conflicts of interest between DEPA and domestic gas suppliers.

 

PPC's new business plan 

The main power utility PPC will need to increase revenues, limit expenses and reduce its debt level for a sustainable future, as McKinsey consulting firm has proposed in a project compass, setting challenging targets for the firm.

Taking into account certain figures provided in PPC’s announcement, the power utility’s operating profit will need to increase by approximately 500 million euros to reach a level of between 1 and 1.1 billion euros.

PPC’s latest annual report showed that net profits had fallen by 47.9 percent in 2017, coming to 88.7 million euros against last year’s figure of 170.2 million. 

 

Reuters: Oil will cost 100 euros per barrel

Oil will soon cost $100 per barrel due to supply disruptions caused by U.S. President Donald Trump, Iran’s OPEC Governor told Reuters last Thursday, as he warned that expectations having Saudi Arabia and Russia help to bring down prices were in vain.

Iranian OPEC Governor Hossein Kazempour Ardebili told Reuters that Trump “should have expected” when blocking Iran’s access to the global markets that it would end up as “hostage (to) Saudi Arabia and Russia”, who, as he said, had little vested interest in bringing down prices.

“The responsibility of paying unnecessary prices for oil by all consumers of the whole world, especially in U.S. gas stations, is solely upon your (Trump’s) shoulders and the price of over $100 per barrel is yet to comeKazempour said.