Engie to book entire $1 bln credit loss from halted Nord Stream 2 pipeline

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The logo of French gas and power group Engie is seen in Nantes, France, September 28, 2020. REUTERS/Stephane Mahe/File Photo

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April 21 (Reuters) - French utility Engie (ENGIE.PA) plans to account for a credit loss on the entirety of its 987 million euro ($1.07 billion) exposure to the Nord Stream 2 gas project, it said at a shareholders' meeting on Thursday.

The company had warned of the credit exposure last month after Germany blocked the project in response to Russia's invasion of Ukraine. The $11 billion project finished construction late last year but never started. read more

Responding to questions from shareholders, the group said it would use "all opportunities" to secure its gas supplies, which could lead to a larger share of liquefied natural gas.

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"The group has already intensified the short-term diversification of its gas supply and will continue to do so," it wrote to shareholders, citing long-term contracts with the United States, the Netherlands, Norway, Algeria - and Russia.

Chairman Jean-Pierre Clamadieu said it was not up to the group, which buys gas from Russian state utility Gazprom (GZAVI.MM), to decide to stop sourcing its supplies from the country, but that this decision had to be made by governments.

Russia supplies around 40% of the EU's natural gas but has seen the financing and logistics of its exports hit by Western sanctions following its invasion of Ukraine, where an expert mission says the country has committed war crimes. read more

Engie said that there would “undoubtedly” be further costs linked to extending the lifetimes of two nuclear plants in Belgium after a delayed decision from authorities there. It had initially estimated the cost at around 1 billion euros.

($1 = 0.9184 euros)

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Reporting by Benjamin Mallet and Sarah Morland; Editing by GV De Clercq

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