NEWS Briefs
Germany
Retail - E.On will initiate a lawsuit against 23 Dortmund-based gas boycotters on 16th March next year in response to a boycott by this group of the company’s customers, who have refused to pay their gas bills in full in protest to E.On’s gas price hikes on 1st October 2004. Only 19 of the original 23 boycotters are left. Theyare currently being supported by a citizen’s initiative group in Paderborn, called “Gas prices down”. The four other customers had backed down and decided to pay their gas bills in full.
The news follows another lawsuit initiated on 15th September by retail customers against E.On Hanse. 52 gas customers based in Hamburg sued the German regional supplier, in protest against recent gas price increases. The customers are represented by Hamburg’s consumer union, which is demanding that E.On discloses its price calculations and is calling into question the inappropriateness of E.On’s current gas prices. At the end of first hearing, the judge announced it seemed likely that E.On would have to disclose its calculation structure, but it has not ruled on the issue yet. E.On Hanse is majority-owned by E.On’s energy holding E.On Energie (73.85%).
Norway
Discovery - Statoil has discovered gas at its Tulipan prospect in the Norwegian North Sea 130 km west of Hydro’s Ormen Lange gas development, but it may not be large enough to be commercially viable. The company is carrying out extensive logging of the site. Statoil has a 90% stake in the Tulipan site, with Norske Shell holding the remaining 10%. BG Norge has agreed a deal with Statoil for a 20% stake in the development, subject to government approval.
Exports – Gas Exports are expected to reach record levels of 83.5 Gm3 for the year ending 1st October, according to offshore pipeline operator Gassco. This represents an increase of 11.3%, or 8.5 Gm3, from the previous year. “This growth partly reflects the start-up of the Kvitebjørn field in the North Sea,” said Gassco vice president for product management Jan Hauge. Increased deliveries through the Vesterled pipeline from the Heimdal platform in the Norwegian North Sea to St Fergus in the UK will also contribute to increased sales. The largest volume of gas delivered from the Norwegian continental shelf during a single day in the 2004 gas year was 265.73 Mm3, recorded on 15th March.
United Kingdom
Upstream - Centrica has purchased from Endeavour Corporation a 20% stake in the Turnberry gas exploration prospect in the Central North Sea. Centrica will also farm in to block 31/26b in the Central North Sea and cover 26% of the cost to drill the well, estimated at £2.6 million. Turnberry is the second in a possibly larger series of exploration agreements for gas prospects in the North Sea. Endeavour has a 40% stake in the Turnberry licence block, Palace Exploration 21.875%, Challenger Minerals 13.125% stake and Reach Exploration 5%. The move is part of Centrica’s plans to find new gas sources to add to the company’s existing portfolio, focussing primarily on UK, Norwegian and Dutch sectors of the North Sea. In June, the company entered into an agreement to explore the Prometheus prospect in the southern North Sea, where exploratory drilling will start this month.
Power generation - The UK’s principal gas supplier Centrica has increased its stake in Humber Power to 100%. In an all-cash deal worth £46.5 million (EUR 68.5 million), Total sold to Centrica the remaining 40% of shares in the company, which owns the 1260 MW South Humber Bank CCGT in north Lincolnshire. Centrica said that the deal would increase the company’s generation capacity to 4 GW, and allow the company to provide approximately 54% of its peak residential customer demand from its own sources. The plant was commissioned in two phases between 1997 and 1999. Centrica purchased its initial 60% interest in the plant in 2001.
Russia
Exports - Gazexport, Gazprom’s export arm, increased gas exports to 113.9 billion Gm3 in the first eight months of 2005, a rise of 11% on the same period last year. The largest part of this increase was accounted for by Ukraine. This in part reflects changes in various tax avoidance deals with third party traders, resulting in shortages in the Ukrainian gas balance. This forced Ukraine to buy more directly from Gazexport than previously. Some of the gas it receives from Gazprom as payment in kind for gas transit pays past gas debts to Gazprom.
In what Gazprom defines as western Europe, several of the major importers have actually lifted less gas so far this year. The bulk of the 3 Gm3 or 5.7% increase is taking place in Turkey.
Gazexport sales Jan-Aug 2005 (Gm3) 2005 2004 % chg
West Europe
Austria 4.42 3.67 20.4%
Germany 27.59 27.11 1.8%
Italy 14.19 14.64 -3.1%
France 8.80 9.15 -3.8%
Switz. 0.25 0.23 8.7%
Neth. 2.88 1.87 54.0%
Finland 2.90 3.23 -10.2%
Turkey 11.63 9.06 28.4%
Greece 1.50 1.35 11.1%
Belgium 0.16
Subtotal West Europe
74.32 70.31 5.7%
East Europe
Czech R 5.41 4.96 9.1%
Slovakia 5.12 4.93 3.9%
Poland 4.72 4.57 3.3%
Bulgaria 2.01 2.19 -8.2%
Hungary 6.13 6.41 -4.4%
Romania 3.17 2.91 8.9%
Serbia 1.17 1.36 -14.0%
Bosnia 0.23 0.21 9.5%
Croatia 0.78 0.74 5.4%
Slovenia 0.45 0.42 7.1%
Macedon. 0.05 0.04 25.0%
Subtotal East Europe
29.24 28.74 1.7%
Former Soviet Union
Estonia 0.14 0.16 -9.7%
Ukraine 4.46 0.84 431.6%
Moldova 0.90 0.71 26.9%
Armenia 1.03 0.84 22.8%
Georgia 0.90 0.75 20.5%
Azerbaij. 2.92 0.44 560.6%
Subtotal FSU
10.35 3.73 177.4%
Total exports
113.91 102.78 10.8%
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