Privatisation process of Greek gas grid operator DESFA

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Series Details 01.12.16
Publication Date 01/12/2016
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Greece announced on 30 November 2016 that negotiations to sell a 66% stake in gas grid operator DESFA to Azerbaijan's SOCAR were not successful.

According to the Greek energy ministry, SOCAR's proposal to reduce the price of the deal was not feasable from a legal standpoint and would cancel the tender which had been won by SOCAR in 2013. The negotiations took a long time partly because the European Commission had launched an investigation into whether the acquisition of DESFA by SOCAR breaks EU competition rules.

The Commission later asked SOCAR to sell 17% of DESFA to a third party so that its stake drops to 49% and satisfies EU competition authorities. The Commissioner for Energy said on 19 January 2017 that Greek authorities should still privatise a majority stake in Greek gas grid operator DESFA.

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Related Links
Kathimerini, 01.12.16: Greece fails to reach deal on gas grid sale to Azerbaijan's Socar
EurActiv, 19.01.17: Commission insists Greece must privatise 66% of DESFA gas grid
Reuters, 11.01.17: Greece wants to sell smaller stake in gas grid operator

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