Thursday, July 3, 2025

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.


Information for this briefing was found via Bloomberg. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Gold Drilling Scaled to 60,000 Meters: How Big Can This Get? | Roger Rosmus – Goliath Resources

Baselode Energy To Acquire Forum Energy: The Merger Of Equals Deal

TriStar Gold: The Revised Castelo de Sonhos Prefeasibility Study

Recommended

ESGold To Expand Mine Building At Montauban In Advance Of Gold & Silver Production

Goliath Resources Expands 2025 Drill Program To 60,000 Metres

Related News

Germany Approves Plans For Expansion Of Gas Power Plants

Germany has approved a significant expansion in its gas-fired power capacity, aiming to finance the...

Tuesday, February 6, 2024, 12:33:00 PM

Germany Will Have No Choice But To Allow Russian Uranium Shipment

The German government’s hands are tied and it has no choice but to permit the...

Wednesday, September 14, 2022, 12:51:00 PM

Germany Gains Control of Russian-Owned Rosneft Refineries in Desperate Bid to Avert Complete Energy Crisis

It appears that Germany has moved onto plan B to avert a full-blown energy crisis,...

Monday, September 19, 2022, 02:47:52 PM

Germany Weighs Extending Lifespan of Nuclear Power Plants in Effort to Secure Country’s Energy Supply

Germany is mulling whether or not to extend the lifespan of its existing nuclear power...

Monday, February 28, 2022, 11:32:00 AM

Bye Wind, Hello Coal: German Windmills Will Be Taken Down To Give Way To A Coal Mine

Eight wind turbines are about to be dismantled to make way for a planned Garzweiler...

Wednesday, October 26, 2022, 10:47:07 AM