Saturday, October 1

Germany Begins Historic Takeover Swoop: Energy Update

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(Bloomberg) — Germany is taking control of Russian oil major Rosneft PJSC’s German oil refineries and is nearing a decision to take over Uniper SE and two other large gas importers as it tries to avoid a collapse of its energy industry.

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Regulator BNetzA will take trusteeship of stakes in oil refineries in Schwedt, Karlsruhe and Vohburg, equivalent to around 12% of Germany’s oil processing capacity, the economy ministry said Friday.

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State ownership of Uniper, VNG AG and Securing Energy for Europe GmbH, formerly Gazprom Germania GmbH, is the now main solution under discussion to prop up the gas industry too.

Surging gas prices and Moscow’s move to squeeze supplies to Europe have already prompted a series of government bailouts and rescue loans. But those measures are increasingly dwarfed by the scale of the crisis and there’s a risk that systemic energy providers collapse without more robust government support.

Key Developments:

  • Germany Seizes Rosneft Unit in Escalation of Energy Fight
  • Germany Working on Historic Takeover of Three Gas Companies
  • France Aims to Cut Energy Consumption by 10% This Winter
  • UK to Meet Energy Firms in Push to Cap Low-Carbon Power Costs

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(Timestamps in London.)

Gas Prices Slip in Early Trading (7:18 am)

Benchmark European gas futures fell as much as 3.9% to 206 euros per megawatt-hour. Trading has been volatile in recent days as traders take stock of various government plans to ease the crisis. For now, prices are little changed on the week.

UK to Meet Energy Firms Next Week (6:30 pm Thursday)

The UK government is set to meet with some of the country’s biggest power producers to push through a measure that would cap wholesale electricity prices starting this winter for low carbon sources of electricity. UK Business Secretary Jacob Rees-Mogg is pushing to quickly agree long- term contracts with energy sources like wind farms, nuclear plants and biomass-burning stations.

France Steps Up Target to Cut Power Use (5:30 pm Thursday)

The French government hiked its target to reduce energy consumption this winter and avoid energy outages in a bid to shake up public awareness.

Prime Minister Elisabeth Borne urged households, businesses and local and national authorities to cut their power use by 10% compared to last year, according to a presentation sent to reporters following a press conference. Emmanuel Macron’s government had previously put forward a target to reduce consumption by that amount within two years.

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