Various alternatives are being examined for the future look of Greece’s natural gas market, especially the role to be played by DEPA, the Public Gas Corporation. Decisions on the direction to be taken are expected by the end of this month, officials have informed.
The gas utility, which has maintained a dominant, vertically integrated presence in the market, is currently engaged in negotiations with local retail gas business partners Shell and ENI – holders of respective 49 percent stakes in the EPA Attiki and EPA Thessaly-Thessaloniki ventures – while the government is representing the utility in the ongoing third bailout review talks with the country’s lenders.
DEPA, a financially robust enterprise whose cash reserves are expected to have reached approximately 300 million euros by the end of the year, is strongly positioned in these talks. The gas utility has the ability to finance any decisions taken for its future market position, sources have noted.
The government is pursuing a plan that would maintain DEPA’s majority role in EPA Attiki, supplying the wider Athens area, in exchange for a minority role in EPA Thessaly-Thessaloniki.
According to sources, DEPA is close to striking a deal with ENI for their EPA Thessaly-Thessaloniki venture. A drastically reduced stake for DEPA, to a level well under 49 pecent, is regarded as a possible outcome.
As for EPA Attiki, the current arrangement, through which DEPA holds 51 percent of the venture and Shell 49 percent, could be left untouched.
A gas market reforms road map needs to be delivered by the end of the year, according to a term included in the revised bailout following a request by the lenders, its aim being to remove factors not promoting competition. Though this condition’s description has remained vague, it can be interpreted as representing pressure from the lenders for an end to DEPA’s omnipresence.