Greek Minister Maniatis discusses speeding up DESFA at Council of Energy Ministers
Greece’s Environment, Energy and Climate Change Minister Yiannis Maniatis discussed the speeding up of the privatisation of nation natural gas grid operator DESFA at a meeting with European Commission Vice-President for Energy Union Maroš Šefčovič on the sidelines of the Council of Energy Ministers 8-9, December in Brussels, according to ANA-MPA report.
Maniatis said they discussed the approval of the pending deal by the Commission and he requested a speeding up of the process because of DESFA's role in strengthening energy security in Europe.
Minister said that the Greek authorities have cooperated with the Directorate General for Energy and all procedures are fully compatible with both national legislation and with the third energy package.
SOCAR has acquired 66% stake in DESFA for 400 million Euros after winning a tender in June, 2013. The European Commission has not yet approved the deal.
According to report’s Greece Energy Regulator (RAE) allowed the transfer of DESFA to SOCAR on 2nd of October. The decision was taken after consultation with the European Commission and additional obligations by DESFA, as the majority of the shares transferred to company outside the EU.
The European Commission's competitiveness agency on November 5 requested a three-month allowance before it issues a decision on the compatibility with existing laws of DESFA's buyout by Azerbaijan state-controlled energy outfit SOCAR.
The European Commission launched an in-depth investigation to assess whether the proposed acquisition of DESFA by SOCAR meets the EU Merger Regulation.
The Commission expressed concerns that the transaction might reduce competition in natural gas in Greece because it could allow the merged entity to hinder SOCAR's competitors in accessing the Greek gas transmission network. The Commission shall take a decision to March 23, 2015.
Meanwhile SOCAR expressed its optimism that The European Commission will approve the deal by 25, February next year.
The state company continues cooperation with European Commission on a matter and provide all needed information and answer inquiries to speed up the process, SOCAR President Rovnag Abdullayev told journalists in Baku.
According to Abdullayev, DESFA privatization “is more important for Greece and EU.” For SOCAR it is one of many investments projects, he said.
“This is good infrastructure project for an investment and a long-term revenue, but there are plenty of short term-investment opportunities for SOCAR. We are working with them [Directorate-General for Competition of the European Commission], answering all questions and waiting that we will receive a decision by 25, February”, said Abdullayev.
Although DESFA’s operated transmission network is not directly related to the Trans Adriatic Pipeline (TAP) for delivery of Azerbaijani gas to Europe cooperation between two of them is necessary, SOCAR believed.
DESFA and TAP should set up the reception and further transmission of gas purchased by Greece from Shah Deniz-2 in Caspian to the Greek end consumers.
TAP and DESFA signed a cooperation agreement in 2013 for operate and maintain the Greek section of the pipeline, which will traverse northern Greece as well as for the interconnection and interoperability of the two natural gas networks, as part of the Host Government Agreement between TAP and Greece government.