Indications of a possible withdrawal of interest by three European companies considering to acquire a stake in DESFA, Greece’s natural gas grid operator, are growing as a result of unfavorable developments concerning the company, as well as the Greek market and economy.
Italy’s Snam and Belgian-Spanish team Fluxys-Enagas have been looking into the prospect of acquiring a 17 percent of DESFA. Following European Commission intervention over EU energy security and competition concerns, the Azeri energy company Socar must surrender this portion from 66 percent initially agreed to with DESFA as the winning bidder of an international tender that was finalized in 2013. Socar’s offer of 400 million euros for a 66 percent stake in DEFSA had been accepted by the then-Greek government.
According to sources, consulting firms hired by Snam and the Fluxys-Enagas team have, in recent days, delivered unfavorable reports, primarily as a result of two key issues. Consulting firms are concerned about the risk factor concerning investments in Greece as well as current local discussion on possible regulatory revisions that would affect the gas operator’s pricing policy.
The Greek government wants to make revisions to avoid a sharp hike in gas network usage fees that could be made by the new owners under DESFA’s current operating regulations.
Snam officials did not join an Italian delegation of corporate figures that accompanied Italy’s foreign minister Paolo Gentiloni on an official visit to Athens less than a fortnight ago. Officials of Italian companies that are either already present in the Greek market or looking to invest joined Gentiloni, who met with Greek energy minister Panos Skourletis.
In another worrisome sign for the DESFA sale’s prospects, Snam and the Belgian company Fluxys have expressed interest in the sales of two other European natural gas networks, Germany’s Thyssengas and Austria’s Gas Connect. Considering the respective sizes of Snam and Fluxys, in particular, they will most likely not be able to take on all these deals, including DESFA, at the same time.