The long-running attempt to sell the Greek gas grid operator Desfa to Azerbaijan’s Socar hit another setback, but the latter says it still expects to complete a deal by 2017.
Socar’s purchase of a controlling stake of Desfa is of great importance to Azerbaijan, giving it control of a European gas supplier and enhancing its role in providing energy security for Europe, the company sources said.
Socar is keen on LNG business too. The plans to upgrade the country’s LNG terminal in Revythoussa near Athens will meet these interests and is important for gas supply in the wider region beyond current route of the southern gas corridor.
“Currently we are in the process of reducing the stake of Desfa through sales to potential buyers in Europe and this process is expected to be completed in late 2016”, sources told NGE.
Socar denies any rumours that company was set to withdraw from the Desfa deal owing to the plunge in oil and gas prices over the past couple of years.
Last December Socar and TAIPED, the Greek state privatization fund, extended their sales and purchase agreement (SPA) for the deal by six months. Socar originally agreed to purchase a 66% stake in Desfa for €400mn after winning an international tender in 2013.
However, the acquisition of major stake in the Greek gas transmission operator is still on hold as the European Commission intervened to demand that it surrender 17% to a certified European operator.
Belgium’s Fluxys, Spain’s Enagas and Italy’s Snam have conducted due diligence procedures to be finalised early this year in preparation for their expected offers. However, Fluxys has rejected a proposal to discuss the possible investment, Greek EnergyPress reported.
The news circulated on the sidelines of an energy conference in Athens organized by TEE, the Technical Chamber of Greece, last week, sources said, adding that Italy’s Snam has also decided to no longer consider the Desfa stake. The third potential buyer however, Spain’s Enagas, remains interested.
“The potential investors considering taking on the surrendered 17% were advised by consultants to avoid the move as a result of the risk factor surrounding investments in Greece and the possibility of regulatory revisions that would lessen the gas operator’s revenue potential,” reports said.
Fluxys, Snam and Enagas are partners in the TransAdriatic pipeline that will deliver gas from Shah Deniz 2 gas development in Caspian to Greece and Italy.
Kama Mustafayeva
SOURCE
