The federal government can support Uniper up to €34.5 billion, the competition watchdog announced on Tuesday. The Commission had already approved on Friday the nationalization of the company under merger and antitrust aspects.
According to the EU Commission, a number of conditions are linked to the approval of state aid for the extensive nationalization of the Uniper energy group. Uniper will sell certain parts of its business that make up a significant portion of its earnings before interest, taxes, depreciation and amortization, the competition watchdog in Brussels announced on Tuesday evening. This notably includes the Datteln IV Power Plant, the Gönyu Power Plant in Hungary and a number of international subsidiaries.
Uniper will also release part of its storage and pipeline capacity reservations and make them available to competitors. The measures would be accompanied by adjustments to the corporate strategy, which would allow for more competition on the market. Limiting long-term contracts has been cited as an example in this context.
According to the works council, the conditions imposed on Uniper involve “hard cuts”
The works council of the energy group Uniper has defined the conditions imposed by the EU Commission in relation to the rescue package as “hard cuts”. “In particular, the information about the sale of Datteln 4 and Uniper Wärme is particularly painful for affected colleagues in Germany a few days before Christmas,” the group’s works council chairman Harald Seegatz told the news agency on Wednesday. German. The corresponding processes for the employees must now be implemented as smoothly as possible. They will insist on this. “Also that Uniper will take its well-deserved opportunity for the future”.
On Tuesday, the European Commission approved a multibillion-dollar stabilization package. It envisages a temporary and extensive nationalization of the ailing company. In the course of this, a capital increase of up to 34.5 billion euros is possible. For competitive reasons, Uniper had to commit to selling several subsidiaries and other parts of the company by the end of 2026. These include the Unipro business in Russia, the Datteln 4 coal-fired power plant and the district heating business in Germany.
It’s important to the company that stabilization can be done now, Seegatz said. You need to agree on a forward-thinking strategy. “At the end of the year, this is the most important message for all colleagues who are doing everything they can for this company and thus for security of supply.”
First gas fed into the gas network at the LNG terminal in Wilhelmshaven
One day ahead of schedule, gas importer Uniper has started the commissioning of Germany’s first liquefied natural gas (LNG) import terminal in Wilhelmshaven. According to the Düsseldorf company, shortly after 9 o’clock on Wednesday morning, the first gas was fed into the newly built connecting pipeline from the terminal ship “Höegh Esperanza”.
“The fact that the first gas is already flowing through our LNG terminal in Wilhelmshaven is further proof of the determination with which everyone involved is pushing the project forward. The test phase, which is expected to end at the end of February, is now starting,” said Uniper, head of investment planning Holger Kreetz of the German news agency.
Originally, Uniper had planned to inject gas into the German gas grid for the first time on 22 December. According to a Uniper spokesman, the fact that things are going faster now is due to the close collaboration between authorities and companies in the construction of the terminal. On Saturday, Chancellor Olaf Scholz (SPD) opened the terminal together with other semaphore government leaders. Uniper operates the terminal with support from the federal government.
The special vessel “Höegh Esperanza” reached Wilhelmshaven last Thursday fully loaded with around 165,000 cubic meters of LNG on board and moored at the newly built quay. The vessel is the technical heart of the terminal, redistributing the liquefied gas on delivery and bringing it back to shore. According to Uniper, the amount of LNG the vessel has on board is enough to supply 50,000 to 80,000 households in Germany for one year.
According to market reports, the vessel will deliver between 15 and 155 gigawatt hours of natural gas daily into the gas grid during the commissioning phase. The gas will then also be used for the commissioning of the newly built connecting pipeline, approximately 26 kilometers long, from Wilhelmshaven to Etzel in East Friesland. But then it is also available on the market. Commercial operation of the floating terminal is expected from mid-January, with a maximum capacity of approximately 155 gigawatt hours per day. “The next milestone is the arrival of the first LNG vessel in mid-January,” Kreetz said.
Lower Saxony’s Economy Minister Olaf Lies said the commissioning was an important signal for citizens and the economy. “It is a very good day which shows that we are putting Germany’s energy supply on a secure footing,” said the SPD politician.
Uniper wants to repay the credit line to Fortum promptly
The gas group Uniper wants to repay the 4 billion euro credit line to the Finnish parent company Fortum around December 21, i.e. “immediately” after the capital increase. As announced by Uniper SE, the repayment will be made to the financial subsidiary Fortum Finance Ireland DAC.
At the same time, Fortum Oyj, Fortum Finance Ireland DAC, Uniper SE and Uniper Global Commodities SE reached an agreement on the termination of loan commitments and the partial termination of a guarantee facility.
This ends a credit framework agreement concluded in these parts in January 2022, which involved shareholder loans and guarantee commitments by the Fortum companies in the amount of up to 8 billion euros.
Fortum Oyj to transfer all shares of Uniper to a federally owned subsidiary as part of stabilization measures for the Uniper Group. For this reason, the repayment and termination of the credit and guarantee commitments was agreed.
On Tuesday, the European Commission approved state aid for Uniper and Securing Energy for Europe GmbH (Sefe), formerly Gazprom Germany.
The rescue package for Uniper includes, among other things, a capital increase of €8 billion and the creation of authorized capital of up to €25 billion to compensate for future losses in the years 2022 to 2024.
Following the acquisition of Uniper’s shares from Fortum and the capital increase, the federal government will own a 99% stake in the utility.
On Wednesday, Uniper’s share temporarily jumped by 3.22% to 3.08 euros via XETRA.
BRUSSELS/DUSSELDORF/WILHELMSHAVEN/FRANKFURT (awp international/Dow Jones)
