Bailout Signs: Uniper Draws From Winter Storage, Applies For €2-Billion Credit Line Extension
German energy giant Uniper seems to be doing everything short of implementing the bailout themselves directly from the government just to save its troubled situation. The company has warned that its insolvency status is just within “a few days” after it has started to draw from its energy reserves meant for winter.
“We are currently reducing our own gas volumes in our storage facilities in order to supply our customers with gas and to secure Uniper’s liquidity,” the company said in a statement.
Drawing from the winter reserves, while it threatens the country’s energy supply for the coming season, also will help the firm to stay away from buying all gas requirements for the spot market price.
“It is clear that Uniper cannot wait weeks, but needs help in a few days,” Harald Seegatz, deputy chairman of the supervisory board, said in an interview.
The company’s storage capacity is said to be currently at 56%, down from about 60% reached on Sunday. This occurs in the midst of the European Union’s mandate for its member states to maintain the storage to 80% before this winter and up to 90% in 2023.
As if this situation wasn’t enough, Uniper also had to apply for an extension for its due revolving credit line with KfW Group of around €2 billion.
“An application to increase the KfW credit facility was additionally and independently submitted today,” the company said in a statement. “Talks between the German government and Uniper on stabilization measures are still ongoing and it is currently not foreseeable when these can be concluded.”
The said credit line is already maxed out and applying for an extension is said to be a “reaction to continuing supply disruptions of Russian gas and the associated developments on the energy markets and exchanges.”
The firm’s parent company, Finnish state-supported firm Fortum Oyj, had previously infused the German energy firm with a €8 billion credit facility and is not looking to add more in the near run.
The gas supply issue is embroiled with the current energy crisis and the looming probability of the Nord Stream 1 pipeline being cutoff. Despite this, Berlin committed earlier last week to zero out its Russian coal and oil import dependence by the end of the year.
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