elections

PPC lignite units sale to await country’s next administration

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Prime Minister Alexis Tsipras’ announcement last night of a pre-election period leading to national elections expected on June 30 effectively ends any hope of an on-schedule completion of power utility PPC’s sale of lignite units.

Participants of the bailout-required disinvestment, which had been relaunched after an initial sale attempt failed to produce a result, were due to submit binding bids by tomorrow. But, given the political developments, the process will now need to be taken on by the country’s next administration.

Political landscape aside, the sale’s participants, troubled by unfavorable conditions,  have appeared unwilling to offer sizable amounts for the PPC units.

Had the PPC sale process not been interrupted by last night’s election announcement, its success would have depended on the government’s ability to handle the political cost of a low-priced sale.

The ongoing effort aiming to liberalize Greece’s electricity market will now most likely need to be re-examined along with a restructuring plan for PPC’s rebound as a sustainable enterprise.

PPC ‘Amynteo closure’ news intended for investors, Brussels

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The main power utility PPC’s plan to discuss the closure of its now-expired Amynteo lignite-fired power station ended up not being included on the agenda of a board meeting last Friday, as the company chief Manolis Panagiotakis had announced ahead of the session, the official reason, according to the company boss, being the need for an additional study on the matter.

However, other underlying reasons were at play, it can be safely presumed. Investors eyeing PPC’s bailout-required sale of the Meliti and Megalopoli power stations were one of the audiences targeted by the utility chief’s Amynteo-related announcement, as it is anticipated this plant’s closure will make Meliti and Megalopoli more competitive and generate better sale price prospects. This sale has been relaunched after an initial effort failed to excite investors.

Panagiotakis’ Amynteo announcement was also aimed at the European Commission as an indication of the power utility’s intention to conform amid reports of a launch of infringement procedures by Brussels against Greece for PPC’s overtime usage of the power plant. A 17,500-hour Amynteo lifeline extension offered by the European Commission expired early last winter but the unit is still operating.

Domestic political interests are another factor behind the board’s avoidance of a discussion on Amynteo’s future at last Friday’s PPC meeting. Given the fact that some 1,000 jobs could be lost if Amynteo is shut down, state-controlled PPC would rather delay any talk on the subject until after the upcoming local, regional and European elections.

PPC is not planning an immediate withdrawal of Amynteo. The power plant’s closure is expected in late 2020 or early 2021, when a 32,000-hour extension offered by the government through a ministerial decision last November – as a further extension to Brussels’ 17,500 hours – should expire.

ELPE Arta-Preveza survey hit by local election interests

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Hellenic Petroleum ELPE’s plan to conduct seismic surveys at an onshore license in northwestern Greece’s Arta-Preveza area appears to have run into problems of disproportionate dimensions as a result of resistance by a small number of local residents and other objectors accustomed to opposing such initiatives.

Local authorities, mindful of upcoming municipal elections in May, are paying heed to the danger-mongering of these teams of people, resulting in serious issues for ELPE’s overall hydrocarbon exploration program.

ELPE had already provided local authorities with detailed information supporting the region and its residents would not be impacted in any way by the prospective seismic survey work.

Until recently, local officials, convinced by the ELPE presentation, were prepared to recommend that a license be granted to the petroleum company for its survey work. Instead, local councils of two municipalities in the wider region, Arta and Central Tzoumerka, refused to offer their consent.

As a result, ELPE’s seismic survey plan for Arta-Preveza now appears headed for a delay until after the elections, which will have a knock-on effect on the company’s next scheduled seismic survey, in northern Peloponnese.

Greece must not miss out on the opportunity of discovering major deposits and entering the global petroleum map, which would attract oil majors, industry officials have noted.