ISRAEL-TURKEY LINK STUDY
Studies are to be undertaken in the eastern Mediterranean to investigate the linking of energy networks between Israel and Turkey.
It would be a joint Israeli-Turkish project for an undersea infrastructure corridor to include electricity power lines, and pipelines for natural gas, crude oil and refined products. The study will examine whether the abyss of the eastern Mediterranean basin is suitable for such a corridor.
Israel’s minister of national infrastructure Joseph Paritsky said that the study should be completed within three months and that if the conclusion is favourable, Israel will approach the Turkish government to co-ordinate further progress. He said that the two countries can complement each other in gas, oil and electricity needs.
DiSTRIBUTORS UP FOR SALE
Romania’s government has approved the sale of two more state-owned power distributors as it presses forward in the privatisation
of its power sector.
The two distributors being put up for sale are Electrica Oltenia and Electrica Moldova, with the state offering controlling stakes
to investors in a first stage. The second phase of the sale process envisages a share capital increase to 51% to be made by the buyer. Electrica Oltenia has 1.29 million customers, while Electrica Moldova has 1.34 million.
A consortium led by Bank of America Securities will cover consultancy activities
for the deal.
UES MAY ENTER POLAND
Russia’s national power utility, UES, is interested in buying plants in Poland, according to UES CEO Anatoly Chubais. He said: “I will not say whether they are grids or generating assets, but our basic principle is to buy core assets.”
Poland plans to float a stake in Poludniowy Koncern Energteyczny, which accounts for about 20%
of the country’s power generation. A public share offering in the distributor ENEA is due to take place
in late 2004 or early 2005.
GEOTHERMAL PLANT REVIVED
Bali Energy Limited (BEL) has taken over management of a geothermal power plant project located in Bedugul, Bali, which was suspended by the government in 1997 following the regional financial crisis. BEL has said that it intends to revive the project.
Ngurah Wijaya, the president of BEL, said that the company will start running production tests on a geothermal well later this summer. “We’ve seen indications of good results from the geothermal well,” he said. “It is estimated to be able to produce
7-10 MWe.” He added that BEL would exploit the geothermal field in a co-operation contract with state-owned oil and gas firm Pertamina, under which BEL would get 96% of the profit, and Pertamina 4%.
Once the power plant comes into operation, the power will be sold at a price expected to be below 5 US cents/kWh.
E.ON QUIET ON THE RUSSIAN FRONT
E.On has announced that it plans to sell it Ruhrgas Industries unit which makes metering equipment and industrial furnaces and has a turnover of r1.1 billion.The auction will take place later this year.
E.On did not say how long the sale would take, or how much it expected the business to sell for. Wulf Bernatot, CEO of E.On, said the company needed more time to examine its strategy in Russia, where
it is looking at possible growth opportunities in gas production and electricity generation.