Wednesday, October 31, 2012


Gazprom closes in on Greece’s DEPA

EU wants more gas sources in addition to Russia
Greece’s Revithoussa LNG Terminal operated by DESFA – DEPA’s gas grid operator unit. | DESFA
ATHENS - Russian gas monopoly Gazprom is one of the 14 companies that have expressed interest in the privatisation of DEPA, Harry Sachinis, CEO of the Greek state-controlled natural gas supplier, told New Europe on 30 October, adding that it is up to DEPA’s shareholders to handle the sale of the company.
“Fourteen companies have expressed interest and Gazprom is one of the 14 companies,” Sachinis said, adding that companies have until 5 November to submit their non-bidding bids. “By 5 November we will know who is coming, who has real interest, which are the biggest special offers and we’ll take it from there,” he said on the sidelines of a conference organised by the Institute of Energy for South-East Europe (IENE) focusing on the Geopolitical and Development Angle of Greece’s Energy System. 
Asked if an acquisition of DEPA by Gazprom clashes with EU efforts to diversify gas supplies and could create problems between the Greek company and the European Commission, Sachinis said, “I don’t think so. With the existing legislation in Europe anyone can supply gas; anyone can construct a pipeline ... If the market is attractive to someone, regardless who will buy DEPA a new player can enter the market”.
He said DEPA’s acquisition by Gazprom is not necessary for the Russian company to construct the planned South Stream gas pipeline through Greece. South Stream would divide into two pipelines -- one to Greece and the other through the Balkans -- after it passes through the Turkish waters of the Black Sea.
Sachinis said commercial and strategic considerations are at play for any company looking at the Greek market and routes transiting the country. “The privatisation of DEPA is one thing but that does not exclude other [companies] afterwards to take other actions in the Greek market or the regional market around Greece,” he said.
The European Commission has been pushing for the general diversification of gas sources for the EU as a whole and wants to have more gas suppliers in addition to Russia, a Commission spokeswoman told New Europe from Brussels on 30 October. “We want to have new sources of supply and that would be Azerbaijan or Turkmenistan. And then within the European Union we want to have more competition and that’s why in the Third Energy Package there is this unbundling provision, which should guarantee that everybody can use the gas pipeline system so not only the main importer can use it because he also owns it, but he has to offer the services also to other companies,” the spokeswoman said.
Greece is seeking to sell DEPA and its fully-owned DESFA gas grid operator unit. An industry source told New Europe talking on condition of anonymity that Gazprom is very interested in DEPA and “would do everything” to acquire the Greek company, including offering a much higher bid. “But Gazprom will never get DESFA [which owns the pipelines],” the source quipped. “Gazprom knows it and that’s why it has not pursued DESFA,” the source added.
The Commission spokeswoman said a private company can always acquire other companies “as long as they stick to the EU rules.” Now in Greece the problem with the internal market rules in energy is only if the gas importer also owns the network, she said. “Firstly, one would have to see what kind of unbundling Greece has opted for. It is always the case that the company which imports the gas has to sell or cannot be the owner also of the pipeline. There are different options – it is also possible that you also have a sort of subsidiary or you have a manager who actually runs the pipeline,” she said.
“In terms of diversification it’s not like we say: ‘Look we do not want specific companies to be in there’ but it’s just a question whether the law will be applied and this is the unbundling so for Greece I don’t know. They haven’t told us yet what kind of system they have opted for,” the Commission spokeswoman said. “And then we have to see what really their plans are. That’s why it is difficult to say,” she added.
Meanwhile, Greece is also involved in building the Trans-Adriatic Pipeline (TAP) that will carry Azerbaijani gas across Greece, Albania to Italy. Greece’s Deputy Minister of Environment, Energy & Climate Change Makis Papageorgiou, who earlier reiterated his country’s intention to become a regional electricity and natural gas hub, told New Europe on the sidelines of the conference on 30 October that plans to bring gas from Phase 2 of Azerbaijan’s Shah Deniz field are “progressing”. TAP is competing with Nabucco West for 10bn cubic metres of gas from Azerbaijan. Papageorgiou said there is political commitment for TAP as shown by the memorandum of understanding that has been recently signed between the Italian, Greek and Albanian governments in New York to support TAP and there would be more political steps.                             new europe on line

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