More profitable projects than DESFA, SOCAR says
By Gulgiz Dadashova
Energy security has been the top element of almost all relations between Azerbaijan and Europe, which appraises the post-Soviet country's important role in diversification of gas supply sources for it.
“Azerbaijan plays major role in ensuring Europe’s energy security,” was the mostly sounded statement over the past period. Azerbaijani gas can meet the demand of the energy-hungry European markets and is valuable on the background of recent tension between the West and Russia -- the major supplier of blue fuel to Europe.
The gas supplies from the Caspian state to Europe is not so big, but it is vital for the countries through which will the Southern Gas Corridor pass and more than enough to supply gas to southern and eastern regions of Europe.
Also, the country is viewed as the main chain in the possible and “desired” gas supply from Turkmenistan to Europe, but it’s not the sole role of the country.
The EU has repeatedly praised Azerbaijan's increasing role in the European energy security and stated its support to projects targeting the diversification of energy supply sources.
On this background the European Commission's concerns over the most attractive energy deal of the last year -- SOCAR's intention to buy a majority stake at Greek gas transmission system operator -- was not understandable.
The Commission reported that it has concerns that the transaction may reduce competition on the upstream wholesale supply market for natural gas in Greece because it could allow the merged entity to hinder SOCAR's competitors in accessing the Greek gas transmission network.
The European Commission launched an in-depth investigation to assess whether the proposed acquisition of DESFA by SOCAR meets the EU Merger Regulation.
Given the prospects of SOCAR’s owning DESFA for Greek economy, Europe’s decision caused a lot of questions about the true intention of the EC, as the transaction itself, and the entrance to the Greek market means serious investment in the economy of the country that the crisis almost killed .
Greece has positioned the sale of DESFA as one of the key points of the Greek privatization program. Azerbaijan's energy giant had offered 400 million euros to secure a majority stake of up to two-thirds in DESFA.
SOCAR announced that it will continue to cooperate constructively with the European Commission to complete the process of acquisition of the Greek gas transmission system operator DESFA within the earliest possible period.
"The privatization of DESFA is more necessary for Greece than for SOCAR," SOCAR President Rovnag Abdullayev said while commenting on the decision.
“Europe, Greece needs this project more than we. There are a lot more profitable projects in which you can invest,” Abdullayev said, pointing that SOCAR will not be the losing side in this issue.
The European Commission will make its decision by March 23, 2015, which will be crucial for the future economic partnership and its energy security prospects.
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