MVM Group, the Hungarian state energy company, has recently announced that it expects to finalize the contract for the acquisition of a majority stake in E.ON Energie Romania in June or July. This news was mentioned by MVM's CEO, Karoly Matrai, in an interview, and while this deal was announced last December, it still requires approval from Romanian authorities.
Security Challenges and Concerns in Romania
The Romanian Ministry of Energy expressed concerns about this deal in January, stating that the sale may be blocked for security reasons. The main concern is that MVM's connections with Russia could have negative impacts on Romania's energy security, and there is a possibility that E.ON Energie Romania could later be sold to an entity outside the European Union.
In response to these concerns, Karoly Matrai emphasized that MVM has no plans to divest the companies it intends to acquire and aims to supply its Romanian customers using local gas resources. He also pointed out that the transfer of Russian gas to Romania would incur high costs, and sourcing from domestic resources is always a more cost-effective option.
Forecasts and Plans
Matrai has predicted that the necessary approvals for this deal will be obtained by the end of the second quarter of this year, and planning to finalize the contract in June and July will be achievable. E.ON Energie Romania is one of the largest gas and electricity suppliers in Romania, serving about 3.4 million customers.
Matrai also stated that diversification in energy supply is important, but the shipment of liquefied natural gas is not competitively priced compared to imported Russian gas via pipeline to Hungary. According to him, the company trades about 12 to 13 billion cubic meters of gas annually, with 40 percent of this volume related to Russian shipments.
