The transfer of the 66% of DESFA’ shares to SENFLUGA Energy Infrastructure Holdings S.A. is completed - HRADF

Athens, 20/12/2018

PRESS RELEASE

The successful completion of another important milestone of the Hellenic Republic's program for the development of assets by HRADF marks the transfer of 66% stake (31% owned by HRADF and 35% owned by HELPE) to SENFLUGA Energy Infrastructure Holdings S.A. for a total amount of €535 million.

The business substance of DESFA’s new shareholder, comprising of the European energy companies Snam S.p.A., Enagás Internacional S.L.U. και Fluxys S.A., certifies the attractiveness of the Greek market, highlights the investment prospects of Greece and makes the country as a natural gas hub in Europe.

With respect to the above, the Executive Chairman of HRADF, Mr. Aris Xenofos, stated: “An extremely successful tender process, which attracted considerable investment interest, was completed today. The new era that starts for DESFA strengths also the role and the position of our country as an energy hub for the EU but and the wider geographical region. We have confidence in DESFA's new shareholders and the development plans they will deliver, transferring their international experience and know-how to the company. We are here support them as the case may be”.

Upgraded LNG terminal set for launch amid US interest - ENERGY PRESS

12 SEPT 2018

A third storage tank added to an LNG terminal at Revythoussa, an islet close to Athens, is set for its commercial launch between late October and early November, slightly behind schedule.

The new tank, which promises to increase the facility’s overall capacity to 225,000 cubic meters, almost double its previous size, is currently undergoing test runs.

The facility’s capacity upgrade represents a pivotal development for the LNG terminal, a key asset belonging to DESFA, the natural gas grid operator, whose 66 percent is being privatized. A consortium comprised of Italy’s Snam, Spain’s Enagás Internacional and Belgium’s Fluxys has emerged as the winning bidder with a 535 million-euro offer.

DESFA is already engaged in talks with Greek and foreign firms interested in utilizing the upgraded facility and reserving capacities. They include two US firms, Cheniere and Tellurian, amid initiatives being taken for American gas imports into Greece. Cheniere and Tellurian have enquired about usage fees, capacities, technical details and port capabilities.

All firms interested in utilizing the upgraded LNG terminal at Revythoussa have made clear they are eyeing both the Greek market and the wider region to the north.

Azeri natural gas sellers book 8.6 Bcm/year long-term capacity to Italy: TAP - S&P GLOBAL PLATTS

Brussels, 23 Aug 2018 | 11:28 UTC
Author: Siobhan Hall; Editor: Alisdair Bowles

• 10 Bcm/year Greece
• -Italy TAP gas link to open in 2020
• Shah Deniz 2 sellers have 25-year capacity contracts
• TAP to offer short-term capacity in future auctions

Brussels — Azerbaijan's Shah Deniz 2 natural gas field producers have booked around 8.6 Bcm/year of long-term capacity to Italy in the planned 10 Bcm/year Trans-Adriatic Pipeline, developer TAP's head of communication, Lisa Givert, told S&P Global Platts on Thursday.

TAP is the last leg of the so-called Southern Gas Corridor that is to enable Europe to import gas initially from the 16 Bcm/year Shah Deniz 2 field, a new supply source.

Snam-led consortium in 535 mln euro deal for stake in Greece's gas grid operator DESFA- INDIA TIMES / REUTERS

July 20, 2018, 16:39 IST

ATHENS: A consortium led by Italy's Snam will take a majority stake in Greek gas grid operator DESFA under a 535 million euro ($623 million) deal signed on Friday, the country's HRADF privatisation agency said.

A consortium of Snam, Spain's Enagas Internacional and Belgium's Fluxys will buy a 66 percent stake from the government and top Greek oil refiner Hellenic Petroleum .

Transgaz loses bid for Greece’s grid operator - BUSINESS REVIEW

April 20, 2018 12:08
Sorin Melenciuc 

The consortium led by Spanish company Reganosa, including Romanian state-owned monopoly Transgaz and the European Bank for Reconstruction and Development (EBRD), lost the bid for Greece’s grid operator DESFA, Athens accepting a EUR 535 million offer from the rival consortium led by Italy’s Snam, according to Reuters.

DESFA runs a gas transport network by pipelines of 1,459 km in Greece. The winning bidder was a consortium of Italy’s Snam, Spain’s Enagas Internacional and Belgium’s Fluxys.

The sale of a majority stake in DESFA is mandated under Greece’s latest international financial bailout. The Greek government is selling a 31 percent stake in DESFA and Hellenic Petroleum, Greece’s biggest oil refiner, 35 percent.

For Greece is the second attempt to sale the company, after a previous EUR 400 million deal with Azerbaijan’s SOCAR fell through.

For Transgaz, the bid was the first major attempt to step outside Romania, in an area dominated for decades by Russian giant Gazprom, the main gas supplyer of the countries from the region.

Greece accepts Snam-led consortium's offer for gas grid DESFA - REUTERS

APRIL 19, 2018 / 7:30 PM / 2 DAYS AGO

Angeliki Koutantou

• Athens relaunched the sale last year
• Named Snam-led consortium “preferred investor”
• Greece a crossroads for new gas routes, consortium says

ATHENS, April 19 (Reuters) - Greece has accepted a 535 million euro ($662 million) offer from a consortium led by Italy’s Snam for a majority stake in gas grid operator DESFA, naming it the “preferred investor”, its privatisation agency said on Thursday.

DESFA runs a network for transporting gas from the Greek-Bulgarian and Greek-Turkish borders via a 1,459-km (907-mile) pipeline. It also has a liquefied gas terminal facility on an islet off Athens.

Strategically-placed, Greece could represent an important crossroads for the diversification of supplies and new natural gas routes in Europe, the consortium said.

It anticipated the transaction would be finalised in the second half of 2018 after securing approvals, including antitrust clearance.

At least one DESFA sale offer believed to exceed €500m - ENERGY PRESS

16/04/2018

At least one of two second-round offers submitted last week by two consortiums participating in an international tender offering 66 percent of DESFA, the natural gas grid operator, exceeds 500 million euros, according to energypress sources.

Such a level, if confirmed, would be well above the tender’s first-round offers and a winning 400 million-euro bid that had been submitted by Azerbaijan’s Socar to a previous tender, also offering 66 percent of DESFA, which was not finalized.

In another bonus, the government appears to have secured Greek State rights for natural gas projects and infrastructure of strategic interest in a shareholders’ agreement to accompany the transfer of DESFA’s 66 percent to a new strategic investor.

DESFA bids to finally be opened at end of this week - ENERGY PRESS

26 March 2018

Offers made by two bidding teams to an international tender offering a 66 percent stake of DESFA, the natural gas grid operator, are finally expected to be opened at the end of this week, a month and a half after they had been submitted.

TAIPED, the state privatization fund, has virtually completed its thorough processing and inspections of the offers submitted by the two bidding consortiums, while the participating teams have provided responses as to which respective team member plans to assume the management role, sources have informed.

For quite some time now, officials and pundits have appeared confident the offers may exceed 500 million euros, 25 percent over an offer made by Azerbaijan’s Socar in a previous and unfinished sale attempt.

Snam plans to ‘establish Athens as base for southeast Mediterranean’ - ENERGY PRESS

23/FEB/2018

Snam will aim to contribute to Greece becoming a regional energy hub in the southeast Mediterranean, Federico Ermoli, chief international assets officer at Italy’s Snam, heading one of two bidding teams vying for a 66 percent stake in DESFA, the natural gas grid operator, has stressed in an interview with Greek daily Kathimerini.

Snam and its bidding partners, Spain’s Enagás Internacional and Belgium’s Fluxys, submitted a binding offer to the DEFSA tender last Friday. Staged by TAIPED, the state privatization fund, its content is still being processed before offers are opened, probably late next week.

Another Spanish entry, Regasificadora del Noroeste (Reganosa Asset Investments) joined forces with Romania’s Transgaz and the EBRD, the European Bank for Reconstruction and Development, for the other offer.

“We aspire to further develop the company and contribute to making Greece an energy hub in the Mediterranean for natural gas stemming from various regions,” Ermoli remarked, while adding that DESFA requires strong partners capable of making investments for the future of the firm, country and its geopolitical role.

Commenting on Greece’s strategic importance for Snam, Ermoli said the firm intends to establish an office base in Athens to manage its activities concerning interests in the southeast Meditteranean region.

Greece gets two binding bids in gas grid sale - REUTERS

FEBRUARY 16, 2018 / 7:01 PMReporting by Angeliki Koutantou; Additional reporting by Stephen Jewkes in Milan; Editing by Karolina Tagaris and Jane Merriman

ATHENS, Feb 16 (Reuters) - Greece has received two binding bids for a 66 percent stake in its gas grid operator DESFA, the Greek privatisation agency (HRADF) said on Friday, a sale that is a key condition of the country’s international bailout.

The agency said bids were submitted by a consortium of Italy’s Snam, Spain’s Enagas Internacional and Belgium’s Fluxys, and a consortium of Spain’s Regasificadora del Noroeste (Reganosa), Romania’s Transgaz and the European Bank for Reconstruction and Development (EBRD).

Friday’s deadline for binding bids comes ahead of a euro zone finance ministers’ meeting in Brussels on Monday which will assess Greece’s bailout progress and decide on disbursing more bailout loans.

A share purchase agreement and a shareholders’ agreement for DESFA are due to be signed by April for the sale to conclude by June, before Greece exits its third bailout in August.

DESFA bids of 400 mln or over, minister says - KATHIMERINI

02.08.2017 : 22:42
CHRYSSA LIAGGOU

Energy Minister Giorgos Stathakis has given candidate buyers of gas grid operator DESFA a 400-million-euro bar to clear ahead of next Monday’s submission of non-binding bids.

The minister on Wednesday visited DESFA’s headquarters to learn about the company’s financial state and told employees there were three conditions that would secure the smooth development of the current process for the concession of a 66 percent stake to a strategic investor.

Two teams forming for DESFA tender, expected this week - ENERGY PRESS

20.6.2017 

Two camps appear to be forming as the main candidates in a new sale offering 66 percent of DESFA, Greece’s natural gas grid operator, whose tender could be announced this Thursday.

Italy’s Snam, emerging as the outright favorite, could bid alone or as part of a consortium with a non-operator co-investor such as the fund SFPI, which recently expressed an interest in DEFSA.

TAP pipeline reports progress through Greece - NEW EUROPE

17:43 MAY 4, 2017
New Europe Online/KG

Security is the project’s absolute priority, TAP says

The Trans Adriatic Pipeline (TAP) on May 4 informed the Embassies located in Greece about the progress of the project, highlighting security as the project’s absolute priority.

The approximately 878 kilometre long TAP pipeline will connect with the Trans Anatolian Pipeline (TANAP) at the Turkish-Greek border at Kipoi, cross Greece and Albania and the Adriatic Sea, before coming ashore in Southern Italy.

TAP’s Country Manager for Greece Rikard Scoufias focused on how TAP is being implemented in Greece with respect to local communities, as demonstrated in the engagement and consultation process followed; the extensive communication campaigns launched; the social and environmental investments programme drafted and implemented; and the benefits TAP brings to Greece – both present and future ones, TAP said in a press release.

EU gets wake-up call as Gazprom eyes rival TAP pipeline - EURACTIV / REUTERS

15.2.2017, 7:58
Georgi Gotev | EurActiv.com with Reuters

Russian gas from Turkish Stream could flow to the EU via the TAP pipeline. Gazprom plans to use Pioneering Spirit, the world’s largest construction vessel, to build Turkish Stream gas pipeline’s offshore section.

Gazprom’s bid to tap into a pipeline meant to wean Europe off Russian gas threatens to undermine a pillar of European energy policy and slow plans to develop rival deposits in the eastern Mediterranean.

As the European Union struggles against the “iron embrace” of Russian pipelines, it has made opening a new Southern Gas Corridor to carry gas from Azerbaijan by 2020 a priority.

Snam: First Azerbaijani gas will reach Italy in 2020 - NEWS.AZ

Thu 08 September 2016 17:34 GMT | 20:34 Local Time

The first Azerbaijani gas through Trans-Adriatic Pipeline (TAP) will reach Italian market in January 2020, Chief Executive Officer at Snam Marco Alverà said.

According to Report, Alvera said during the construction of TAP, 231 olive trees in the area of Puglia will be relocated: "Initially 231, and then 1 700 olive trees will be relocated. Southern Gas Corridor worth 50 bln USD is of strategic importance for us.

DESFA deal hits buffers - NATURAL GAS EUROPE

March 31st, 2016

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.

TAP gas pipeline to go ahead despite low oil prices - executive - REUTERS

Tue Mar 22, 2016

Construction of the Trans-Adriatic Pipeline (TAP) to take gas from Azerbaijan to Europe will go ahead despite low oil prices, but costs will be in sharp focus, a senior executive for TAP said on Tuesday.

The 870-km (540-mile) pipeline, which will link Azerbaijan's Shah Deniz II field with Italy, crossing through Georgia, Turkey, Greece, Albania and the Adriatic Sea, is the largest project to bring new supplies to European consumers.

Asked about the impact of plunging oil prices on the project, TAP's country manager for Greece, Rikard Scoufias, told an energy conference in Athens: "The project will not have an impact in terms of challenging the realisation of TAP in any way."

"The financial investment decision has already been taken," he said. "But it does put an additional emphasis on cost management."

EU Clears Greek Subsidy for TAP - NATURAL GAS EUROPE

March 03rd, 2016

The European Commission on March 3 said it has found the Host Government Agreement between the Greek authorities and the Trans Adriatic Pipeline (TAP) to be in line with EU state aid rules.

"Today's decision opens the way for a multi-billion infrastructure project in Greece,” said EU competition commissioner Margrethe Vestager. TAP will invest €5.6bn over five years, of which €2.3bn will be in Greece. With an initial capacity of 10bn m³/yr, TAP will flow gas from the Shah Deniz II field in Azerbaijan to Italy starting 2020 and is a EU ‘project of common interest’ (PCI).

TAP CEO Ian Bradshaw said earlier this week that construction will start in late May or early June in Greece near Thessaloniki.

TAP likely to bring more Caspian gas to European markets, Managing Director says | Trend News Agency

19 JANUARY 2016, Baku, Azerbaijan

The onshore construction activities of the Trans Adriatic Pipeline (TAP) will begin in all countries mid-2016, with the offshore scope starting in the winter of 2017/2018, Ian Bradshaw, Managing Director at TAP AG said in an interview to AzerNews.

“TAP’s progress continues to be in line with the project schedule, which ensures we will be ready to transport Shah Deniz II gas to Europe early 2020,” Bradshaw said.

TAP effectively started construction in Albania in June 2015 with the rehabilitation of access roads and bridges, and marked the occasion with a ceremony attended by Albanian Prime Minister Edi Rama and Energy and Industry Minister Damian Gjiknuri.

Greek Gas Transmission Operator Awaits Belgian Investors | Natural Gas Europe

December 19th, 2015 - Greek gas transmission system operator DESFA has announced its investment plans for the coming decade, while it waits for the entrance of the Belgium's Fluxys in its shareholder base.

To date, the planned privatisation of the Greek state company has not yet been formally completed. So far, any privatisation of the company has encountered regulatory hurdles. Although Azeri SOCAR bought a 66% of the company's shares back in mid-2013, the EU's competition authorities put the brakes on the formalisation of the deal, citing the third energy package. Now, after a series of negotiations, Belgian firm Fluxys has stepped in, seeking to buy at least 17% of the offerd shares, thus decreasing the Azeri majority in the company.

In the meantime, DESFA has progressed with its intentions to boosting the usage of gas in Greece. That includes upgrading the volume capacity of the Revythousa LNG terminal by 40%, as well as taking part in the establishment of the Vertical Corridor with Bulgaria, which will then traverse up to Romania and Hungary. Furthermore a set of new compressor stations are going to be built in the mainland along with new transmission connections to the LARKO nickel industrial complex, the ELPE oil refinery and an array of smaller lines that will connect smaller cities and communities in the mainland with gas.

Security, too, is going to be upgraded. New automation systems and new meter stations are in progress. Another project is to set up mini-LNG terminals to secure the needs of remote island communities that usually have increased energy needs during the summer season, and little energy use in the rest of the season. The approved budget for the works is $2.6 billion (USD) and is not conclusive, since it stipulates that more projects will come in place once and if private investors are interested in participating in those, including a new LNG terminal and an underground storage facility.

Fluxys has in interest for the Greek gas market in the long-term nature; it's a main shareholder of the Trans-Adriatic Pipeline with 19% of that project's shares. Fresh reports from the Belgian press indicate that it aims to establish DESFA as the main gas hub company in Southeast Europe and that it is currently in the due diligence process before acquiring a stake in the entity. Its main competitor so far is the Italian Snam which has also expressed an interest, but has not formalised its plans.

The interest of Fluxys looks promising for DESFA. Nevertheless, there is a catch. One of Fluxys's main shareholders, the Canadian fund Caisse de dépôt et placement du Québec, is vetoing its entrance into the Greek market. As an alternative, the senior management of Fluxys is seriously considering becoming involved in a joint venture with the FPIM investment fund company and the Publigas one, both Belgium-based firms. They plan to raise capital from available funds from the European bank of reconstruction and development (EBRD).

In the long-run Greek pundits expect Fluxys to raise more capital for joint projects with DESFA but also the other state gas trading company, named DEPA. The waiting time for the privatisation process of DESFA may have been long but the large infrastructure project in the gas sector that will be materialised in the country in the coming years may make it worth the wait for Fluxys.

Ioannis Michaletos

Source