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Uniper is a German energy generation and trading company. It operates through 3 segments : European Generation, Global commodities, and International Power generation. Basically, it buys and sells LNG to Germany, and other countries.
The price per share used to be 40€. It tanked to 2.6€ at its lows.
That’s because it used to purchase the LNG from Russians. Who then decided to cut the pipeline supplying Germany (Nord Stream 2)
Over the past week, however, there has been a massive rally from 4 to 7 € per share. This is on the news that :
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Germany is ahead of schedule on their regasification project.
The filling level of the natural gas storage facilities in Germany has cracked the 100 percent mark :
https://www.boerse.de/nachrichten/Gasspeicher-Fuellstand-in-Deutschland-knackt-100-Prozent-Marke/34324736
(Use Google translate)
2. The linchpin of the regasification of big cities of Germany, is dependant on an infrastructure called the FSRU, the Floating Storage Regasification Unit. Uniper is in charge of building these Units. The first one is about to come online in Lubmin, followed by another in Wilhemshaven. They are set to deliver 4.5 billion cubic meters of LNG per year, starting december first.
This is why I’m very bullish even though the stock has jumped by more than 3fold from the past month. I see this going to 10, or even 12 when the terminal comes online and they are able to supply LNG to heat houses and power industries.
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