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Emfesz to acquire Ukrainian energy firm

Hungary’s largest independent natural gas and electricity wholesaler Emfesz has announced on Monday it will buy Ukrnadraservice, a Ukrainian company dealing primarily in oil and natural gas exploration and extraction.

Emfesz (First Hungarian Natural Gas and Energy Trade and Service Provider Ltd.) has not disclosed the price, but said the Ukrainian competition authority has already green-lighted the deal. Emfesz said in January last year it would construct an 800-megawatt gas-fired plant in scope of a green-field investment in Szabolcs-Szatmár-Bereg county, near the Ukrainian border. The construction is to cost Ft 400 billion (€1.5 billion). The first two 400MW blocks are to start operating in 2011. The plant will be expandable to 2,400 megawatts later on, which corresponds to about half of the country’s electricity needs. The last blocks are to be up and running in 2013.

The capacity of Hungary’s only nuclear power plant in Paks, which accounts for 40% of power production, is 1,870 megawatts. The market share of the company on the partially liberalized domestic natural gas market is over 70%. Emfesz entered the electricity market in 2007. Emfesz, part of the Group DF holding owned by Ukrainian businessman Dmitry Firtash, has been operating in Hungary since 2003. Firtash is also a majority owner of RosUkrEnergo, a partner of Russia’s Gazprom. (portfolio.hu)