Greece Extends Desfa Bidding to August

Greece's privatisation agency Taiped (HRADF in English) said July 24 that its board, following a request from a potential investor, has decided to extend up to August 7 2017 the deadline for the submission of the expressions of interest to acquire 66% of Greek gas grid Desfa’s share capital.

Taiped said the extension was decided in agreement with Greek refiner Hellenic Petroleum, which owns the 34% of Desfa not owned by the state.

Greek newspaper Ekathemerini reported July 22 an upsurge in interest in the Greek state's 66% stake, with Dutch gas grid Gasunie and its Belgian counterpart Fluxys expected to enter as a consortium, and France's GRTgaz and Spain's Enagas also expected to bid, with uncertainty over Italian grid Snam's interest. The newspaper also cited industry sources indicating that the €400mn offer price made by Azerbaijan state Socar might be matched.

Socar withdrew its interest last year, after Greece passed a law that raised Desfa’s tariffs less than expected but refused to accept a lower offer price.

Athens in 2013 announced the sale of the 66% Desfa stake to Socar, but this was later blocked on competition grounds by the European Commission unless Socar surrendered at least 17% of Desfa to a European firm such as those cited above; none agreed such terms both with Socar and Athens.

Desfa also operates the Revithoussa LNG import terminal near Athens. Last week, officials of Desfa and its Cypriot counterpart Defa met in Athens for two days to exchange best practice, know-how and expertise. Cyprus is looking at possible LNG imports and expanding its tiny gas distribution system.

Mark Smedley