Bosnia Adopts Long-Term Energy Strategy Key to Unlocking EU Funds
Bosnia's central government adopted a long-term energy strategy on Wednesday after years of political wrangling between its two regions, paving the way for major funding from the European Union and other investors."With this act, we completed the adoption of a package of four most important strategies for economic reforms," said Bosnia's Prime Minister Denis Zvizdic."We stopped a negative trend that meant we could not apply for energy projects and lost hundreds of millions of euros of investments and grants…
Slovak, Polish Firms Sign Deal to Build Gas Interconnector
Polish and Slovak gas transmission system operators GAZ-SYSTEM and Eustream signed an agreement to build a new 165 km (100 mile) interconnector between the two countries, Eustream said on Monday.The link will improve access to the Baltic gas import terminals as well as Norway via the planned Baltic Pipe.In the south, it would improve access though the Slovak-Hungarian interconnection as well as the planned Eastring pipeline leading to the Balkans, it said."Construction of this gas interconnector…
First Wind Farm Operational in Coal-reliant Bosnia
Bosnia's maiden wind farm began producing electricity on Wednesday as part of the country's efforts to cut greenhouse gas emissions and meet the renewable energy standards of the European Union it aspires to join. The 50.6 megawatt (MW) Mesihovina wind power plant, located near the northwestern town of Tomislavgrad, consists of 22 turbines and can produce 165.2 gigawatt-hours (GWh) of power a year, or enough to supply 27,500 households. The turbines are set in rocky-mountainous terrain ascending the Duvanjsko field.
Montenegro Inks 30-year Oil Licensing Deal with Greek Producer
Montenegro awarded Greece's sole oil producer Energean Oil & Gas a 30-year oil and gas exploration licences in two offshore blocks in the Adriatic sea on Wednesday. The contract for the blocks covering 338 square km was awarded in line with the terms of a 2014 tender. The Balkan country produces no oil but initial data indicates it could have enough resources to cover its oil and gas needs. Vladan Dubljevic, the head of Montenegro's Hydrocarbons Directorate, told Reuters borehole drilling would begin as soon as the Greek company completed the project design…
Slovenia's Petrol Wins in Bulgaria
Slovenia's energy firm Petrol has won a deal to improve a public heating system in Bulgaria's capital Sofia, which is the biggest heating system of its kind in the Balkans and the second biggest in Europe, Petrol said on Monday. The aim is to reduce the cost of production and distribution of heating, improve supply quality, reduce energy loss and diversify production capacities, Petrol said in a statement. The company did not disclose the value of the deal. Heating systems like the one in Sofia supply heat to apartments across the city from a single or a number of heating facilities.
Hellenic Petroleum Profits Rise on Higher Exports
Hellenic Petroleum, Greece's biggest oil refiner, posted a 20 percent rise in second-quarter core profit on Thursday, with higher exports offseting lower refining margins. The company, which exports diesel and gasoline to markets in the southeastern Mediterranean and the Balkans, saw refining margins fall as much as 35 percent from $7.3 per barrel and a marginal decline of demand in the domestic market, it said. Exports of diesel and gas doubled to a record high of 2.300 metric tonnes, which contributed to 60 percent of total sales, the company said in a statement.
Siemens Wins $81 mln Wind Turbine Deal
Bosnia's power utility Elektroprivreda HZHB (EPHZHB) said on Friday it had awarded a 72 million euro ($81 million) deal to German industrial conglomerate Siemens to supply wind turbines for its future 44 megawatt (MW) wind farm. Located near the northwestern town of Tomislavgrad, the Mesihovina wind farm is aimed at improving the energy mix of the smallest of Bosnia's three state-run power utilities, which relies solely on hydro to produce electricity. The project, estimated at the total cost of 76 million euros, will be financed mainly through a loan provided by German state-owned development bank KfW.
Greece, Cyprus, Egypt to Speed Up Talks Over Sea Boundaries
Greece, Egypt and Cyprus agreed on Wednesday to speed up talks to demarcate sea boundaries in the Eastern Mediterranean as part of efforts to turn the region into an offshore natural gas hub. Egyptian President Abdel Fattah al-Sisi, Greek Prime Minister Alexis Tsipras and Cypriot President Nikos Anastasiades met in Athens to discuss how they could take advantage of gas reserves especially after Egypt this year discovered the biggest offshore gas field in the Mediterranean. "The discovery of significant hydrocarbon reserves in the east Mediterranean and at Zohr…
Russian Gas Flowing to Turkey as Normal
Russian gas supplies to Turkey are flowing normally, despite the row between the two countries after Turkey shot down a Russian air force jet, a source in Russian gas giant Gazprom said on Thursday. The source said gas was flowing at close to capacity via both main routes to Turkey: a pipeline via the Balkans and the Blue Stream route under the Black Sea. (Reporting by Denis Pinchuk)
Lukoil Wants EU Involved in Romanian Tax Evasion Case
Lukoil, Russia's second-largest oil producer, called for the European Commission to help it fight charges of money laundering and tax evasion involving its Romanian refinery, a senior Lukoil executive said on Wednesday. Last week, Romanian prosecutors seized about 600 million euros ($657.36 million) worth of fixed assets and inventory belonging to Petrotel, Lukoil's Romanian subsidiary. Lukoil's vice-president for oil refining, Thomas Mueller, said up to 2.2 billion euros ($2.41 billion) of assets, including bank accounts in the Netherlands and the UK, could be seized.
Bosnian Region Approves First Wind Farm Projects
The government of Bosnia's autonomous Bosniak-Croat Federation on Wednesday gave approval to three companies to start building wind farms with combined capacity of 138 megawatts (MW), the first such renewable energy projects in the Balkan country. The projects to provide Bosnia's first wind power capacity are designed to diversify energy sources and reduce greenhouse gas emissions. Bosnia generates 40 percent of its electricity from hydro and the rest from coal-fired plants. Unlike other Balkans countries that rely on imports to cover much of their demand…
Pipeline Plan to Bring Western Gas to Balkans Closer
Slovak pipeline operator Eustream expects to sign a memorandum of understanding in the next two weeks with counterparts in Romania and Bulgaria on a proposed gas pipeline aimed at reducing Balkan reliance on Russia, its chief said on Wednesday. The project, its backers say, would ensure countries including Bulgaria and Serbia can receive gas even if Russian supplies via Ukraine are disrupted. The Slovak operator has proposed gas be piped from western European hubs via Slovakia's existing system into Ukraine and then into Romania and on to Bulgaria.
Spot Declines; Monday Falls on More Wind
Stronger hydro power generation sent central and southeast Europe spot power prices lower on Friday, offsetting higher consumption due to colder weather forecasts and modest wind power output, traders said. On regional exchanges, Czech and Slovak power for delivery on Saturday declined more than 28 percent to 30.82 euros ($34) a megawatt-hour (MWh). Hungarian day-ahead dropped nearly 27 percent to 32.22 euros, while the Romanian equivalent fell more than 13 percent to 25.24 euros. Data from Thomson Reuters Point Carbon showed wind power output dropping by 3 gigawatts (GW) to 5 GW on Saturday.
Less Wind Lifts Czech and Slovak Spot, Colder Weather Looms
Declining wind generation levels lifted Czech and Slovak day ahead power on Tuesday as limited import capacity continued to keep southeastern spot prices at a large regional premium, traders said. On regional exchanges, electricity for Wednesday rose 10 percent to 30.37 euros ($36) per megawatt-hour (MWh) in the Czech Republic and gained 15 percent to 31.75 euros in Slovakia, with traders saying cooler weather later in the week could further boost prices. Data from Thomson Reuters Point Carbon showed forecasts for German wind generation to decline about 6 gigawatts to 16 gigawatts for Wednesday.
Power Curve Hits All-time Low, Spot Prices Ease
The Czech and Hungarian power curve hit an all-time low on Monday due to low demand in over-supplied markets and lower spot prices, traders said. The Czech front-year contract traded 1.1 percent lower to 31.60 euros ($38) per megawatt-hour (MWh), while the Hungarian Cal '16 declined nearly 1.5 percent to 42.08 euros. "Both contracts are tracking the benchmark German front-year contract which has hit its lowest level in 11 years due to weak demand and over supplied energy markets," one trader said.
Bosnians to Pay More for Power in Open Market
The regulator in Bosnia's autonomous Bosniak-Croat Federation approved on Monday the region's two power utilities raising household electricity prices in January when Bosnia's power market is due to become fully open. Under the decision by the Federation Energy Regulatory Commission (FERK), Bosnia's top power utility EPBiH and the smaller utility EPHZHB will increase their rates by 4.3 percent and nearly 2 percent respectively. The electricity price is a politically sensitive issue in the Balkan country, where power bills consume a large slice of household income, especially in the winter.
Bosnia to Expand Coal-Fired Plant with China Exim Bank Loan
Bosnia will expand a coal-fired power plant with a loan of 668 million euros ($833 million) arranged with the Export-Import (Exim) Bank of China on Wednesday, local media reported. Top power utility EPBiH plans to build a 450-megawatt unit at its Tuzla power plant, marking the biggest investment in a drive to address the country's creaking energy infrastructure. Ante Krajina, prime minister of Bosnia's autonomous Bosniak-Croat Federation, signed a memorandum of understanding with visiting…
Austria Hopes EU Objections to South Stream Resolved in Next Month
Austria is hoping differences with the European Commission over the South Stream pipeline project can be resolved in the next month or so, allowing the plan to move ahead, Austrian Foreign Minister Sebastian Kurz said on Friday. Plans to build the $40 billion pipeline carrying enough Russian gas to meet almost 15 pecent of European demand while bypassing Ukraine have divided EU member states and run into opposition from the Commission. The European Union had effectively put the pipeline project on ice after Moscow's annexation of Ukraine's Crimean peninsular…
EU Wants Market-Led Response to Any Russian Gas Crisis
"A price increase is not a supply crisis and not a justification for intervening in the market under the pretext of security of supply," the European Commission warned member states on Thursday as it outlined how markets would be effected if gas deliveries are cut this winter as a result of the dispute between Russia and Ukraine. Gas prices could double as a result of a shutdown in transit shipments, according to the International Energy Agency, but the European Commission insists they…
Bosnia's EPBiH Shortlists 7 for Hydropower Bid
Bosnia's top power utility EPBiH has shortlisted seven firms out of 12 bidders to help build a 20 megawatt (MW) hydropower plant on the Bosna river, it said on Thursday. The candidates are China's Dongfang Electric Corp and China International Water & Electric Corp, as well as Austrian construction firm Strabag in a consortium with a unit of Croatian engineering group Koncar . Rounding out the list are two Turkish companies, a consortium led by Slovenian builder RIKO, as well as Italian builder Cooperativa Muratori & Cementisti. EPBiH also extended by a month to Nov.
