Italian company to buy part of SOCAR’s share in DESFA
By Fatma Babayeva
Italian natural gas infrastructure company Snam will acquire 17 percent of 66 percent of Azerbaijani energy giant SOCAR’s stake in Greek natural gas transmission system operator DESFA.
The Greek media reported about the deal citing Stergios Pitsiorlas, Head of Hellenic Republic Asset Development Fund (HRADF) on May 17.
The privatization process of DEFSA will be completed in the near future, Pitsiorlas said, adding that sale of the part of SOCAR’s share in DESFA to Italian Snam is expected to take place soon.
SOCAR won a tender in December 2013 on the sale of 66-percent share in DESFA for 400 million euros ($448 million).
Nevertheless, in November 2014, the European Commission started an inquiry into the compliance of the deal on the acquisition of this stake with the EU’s M&A regulations.
The privatization of DESFA is delayed due to the fact that the EC opposes to the transfer of a majority stake in gas operator to SOCAR. The European Commission does not want the control package of such a big Transmission System transferred to the hands of non-EU country, but remain under the Greek control.
Baku has earlier claimed that from Azerbaijan's perspective, there was no conflict of interest in acquiring a majority stake in DESFA as the gas owner to be pumped through the SGC was not Azerbaijan, but the Shah-Deniz Consortium.
Previously, the Hellenic Republic Asset Development Fund (HRADF) received a formal offer from the Italian company Snam alliance Fluxys-Enagas about the purchase of 17 percent stake in DESFA.
Dutch Gasunie and Italian Snam were among those interested in purchase of DESFA’s 17 percent shares.
Earlier, Greek Minister of Environment, Energy and Climate Change Panos Skourletis said that SOCAR needs to sell 17 percent to a European company in order to complete the acquisition of the remaining stake in DESFA.
Azerbaijan will commence supply of 10 billion cubic meters of gas per year to Europe via Trans Adriatic Pipeline (TAP) in the first half of 2020 which construction began on May 17, 2016.
Moreover, Skourletis emphasized that TAP projects fit well with another gas pipeline scheme in the South Eastern European region- Interconnnector Greece-Bulgaria (IGB), and a planned LNG project in Greek Alexandroupolis city.
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Fatma Babayeva is AzerNews’ staff journalist, follow her on Twitter: @Fatma_Babayeva
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