Gazprom withdraws interest for Greek gas firm DEPA on deadline day, say reports

Πηγή: ekathimerini
June 10 2013

Russian energy giant Gazprom did not submitt a binding offer for Greek natural gas firm DEPA before Monday’s deadline, reports said.

Gazprom was expected to be the only major bidder for DEPA but both capital.gr and Reuters reported that the Russian firm did not declare its interest.

Capital.gr reported that a disagreement over the price at which Gazprom would supply gas to Greek households led to the firm withdrawing its interest. Greece currently pays about 30 percent more than the European Union average for the natural gas it imports from Russia.

The government had been hoping to secure a commitment from Gazprom to lower prices.

Gazprom's only rival for DEPA is M&M Gas, a joint venture by Greek energy firms Motor Oil and Mytilineos. But reports suggested that M&M had also failed to submit a binding bid by Monday’s deadline.

The Russian firm has made a preliminary bid of 900 million euros, whereas M&M offered 550 million.

The failure to secure an offer for DEPA would be embarrassing for the government, which had extended the deadline as it sought to accommodate Gazprom.

The sale of DEPA, along with that of state gambling firm OPAP, were the flagship privatizations of this year. Even with those sales, it appeared that the government would not meet its reduced target of 2.6 billion euros in revenues for this year.

Reuters also reported that another Russian firm, Sintez, withdrew its interest for the purchase of gas network operator DESFA on Monday.

If this is the case, Azerbaijan΄s state company SOCAR is likely to be the only firm to place a binding offer for DESFA.

Editor's note: According to protothema it was the EU Competition Commission that blocked potential acquisition of DEPA and DESFA by Gazprom and Sintez respectively.

SOCAR vs. Gazprom for Greece’s DEPA

Πηγή: New Europe
By KOSTIS GEROPOULOS
April 6 2013

BAKU – State Oil Company of Azerbaijan SOCAR is competing with Russian gas monopoly Gazprom for Greece’s public gas corporation, DEPA, which is being sold as part of the Greece's privatisation programme. But there is more at stake than just buying one more EU energy company.

SOCAR is likely to compete with Gazprom to control non-Russian transportation routes to Europe, Gulmira Rzayeva, Research Fellow at Azerbaijan's Centre for Strategic Studies, told New Europe in Baku on 5 April. This is a healthy competition in the tender bidding for the same stake although the companies' financial capacities are not equal, she added.

“The Azerbaijani company will also need the Greek gas transmission company to invest in the EU country’s downstream market, which is in line with SOCAR’s long-term strategy,” she said.

It seems that SOCAR does not want to let Gazprom take over the control of transportation of the gas via Greece, the only entry point to the South Europe, Rzayeva said.

Even if the Shah Deniz consortium picks Nabucco instead of the Trans Adriatic Pipeline (TAP) to carry 10 billion cubic metres of Azerbaijani gas to Europe, SOCAR wants to keep the Greek market in hand to use the infrastructure to export up to 1 billion cubic metres to the Mediterranean country via the Turkey-Greece Interconnector, she said.

Greece’s DEPA has 50% stake at the Greece-Bulgaria Interconnector (IGB). Another 50% belongs to Italian Edison. Edison is a close partner of Gazprom in the Russian-backed South Stream gas pipeline project as well as one of its biggest clients.

Considering the importance of IGB in the Southern Corridor, Gazprom, by influencing Edison, can freeze indefinitely the construction of the 168-kilometre pipeline, Rzayeva said, pointing out that during three years the construction of the pipeline has still not been completed.

A Memorandum for understanding has been signed between Bulgarian BEH EAD and the Greek gas distribution operator DESFA, which foresees natural gas supplies for the Bulgarian market through utilisation of the capacity of the Greek liquefied natural gas (LNG) terminal Revitusa, gas interconnection Greece-Turkey, as well as capacity in the Greek national gas network if required by the Bulgarian country in compliance with the national legislation.

Rzayeva said that by buying Greece’s DEPA/DESFA, SOCAR can also automatically get a share in IGB as DEPA has stakes in the project and push the project to finalise the construction.

Asked if Azerbaijan is interested in DEPA, Minister of Industry and Energy Natiq Aliyev told New Europe in Baku that this is a decision that concerns SOCAR. He added that it’s too early to say about interest in DEPA because it is not known which pipeline route will be selected.

Azerbaijan’s Shah Deniz consortium said on 1 April it started a final “detailed evaluation” on the Nabucco West and the Tran-Adriatic Pipeline (TAP) proposals. “At the end of June it will be clear,” Aliyev said, adding that Azerbaijan does not prefer one project over the other. “Both of them Nabucco West, TAP are a priority of the European Union. But I think for us there is no difference,” Aliyev said.

Rzayeva told New Europe that the final proposals submitted by Nabucco West and TAP as well as the sale and purchase agreements between gas buyers and the Shah Deniz consortium will play a key role in the decision.

“Both projects have their strengths and weaknesses. For example, to build TAP is cheaper than Nabucco. On the other hand, the Italian market can be oversupplied in the short-term and gas demand there will not grow,” Rzayeva said. “More or less both projects are now equal. It’s the final countdown. We have to wait two more months to see."

ITALY, GREECE, ALBANIA CONFIRM POLITICAL SUPPORT FOR TAP WITH SIGNING OF MOU

Πηγή: TAP
Sept 28 2012

New York, USA. The governments of Italy, Greece and Albania confirmed their political support for the Trans Adriatic Pipeline (TAP) project with the signing of a Memorandum of Understanding (MoU) yesterday evening.

Concluded on the margins of the United Nations General Assembly meeting in New York, and in the presence of representatives from the US government, the MoU provides TAP with the necessary political support to continue its commercial activities in Italy. Next steps will be to complete regulatory approvals.

Kjetil Tungland, TAP’s Managing Director, said: “We would like to thank the Italian, Greek and Albanian governments for this very clear demonstration of political support for TAP. This is another great step forward for the project and is testament to TAP’s commercial and technical strengths and the significant benefits that it will bring to these countries.

“Today’s signing follows a number of major milestones that TAP has achieved this year, including being the first pipeline to be selected by the Shah Deniz Consortium in February, a Cooperation Agreement with the Consortium in June and the Funding Agreement with BP, SOCAR and Total that was signed in August. We are working to further progress the project in the coming months.”

TAP will take natural gas from the giant Shah Deniz II development in Azerbaijan, via Greece and Albania, across the Adriatic Sea to southern Italy, allowing further transport into Western Europe. Designed to expand the transportation capacity from 10 to 20 bcm per year, TAP will open up the so-called Southern Gas Corridor, which will enhance Europe’s energy security by contributing to the diversification of the region’s gas supplies.

Commissioner Oettinger welcomes the signature of the political agreement on TAP >>
EU Energy Commissioner Oettinger said: "This is another important step towards our aim to get gas directly from the Caspian Region."

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About the Trans Adriatic Pipeline (TAP)

The Trans Adriatic Pipeline (TAP) is a natural gas pipeline project that will transport gas from the Caspian region via Greece and Albania and across the Adriatic Sea to Southern Italy and further into Western Europe. The project is aimed at enhancing security of supply as well as diversification of gas supplies for the European markets. TAP will open a new so-called Southern Gas Corridor to Europe and establish a new market outlet for natural gas from the Caspian Sea and beyond.

The project is designed to expand transportation capacity from 10 to 20 bcm per year. TAP also envisages physical reverse flow of up to 80 per cent and the option to develop natural gas storage facilities in Albania to further ensure security of supply.

TAP’s transportation solution will be approximately 800 kilometres in length (Approx.: Greece 478 km; Albania 204 km; offshore Adriatic Sea 105 km; Italy 5 km). Transport will begin near the Greek-Turkish border (Komotini), cross Albania and the Adriatic Sea, and connect with the Italian natural gas distribution system near San Foca in Italy.

TAP’s shareholders are EGL of Switzerland (42.5%), Norway’s Statoil (42.5%) and E.ON Ruhrgas of Germany (15%).

Great potential for relations between Azerbaijan, Georgia and Turkey

Πηγή: Trend
By N.Ismayilova
Feb 17 2012

There is great potential for further development of relations between Azerbaijan, Georgia and Turkey in various sectors of the economy, Minister of Economic Development Shahin Mustafayev said at the Azerbaijani-Georgian-Turkish business forum in Tbilisi yesterday.

"The issues discussed at the Forum, and bilateral meetings will promote further development of trade and economic relations between the three friendly countries, as well as create conditions for the expansion of networking between businessmen," Mr Mustafayev said.

Mr Mustafayev noted that Azerbaijan, Georgia and Turkey established a solid legal basis with the intergovernmental commission playing an important role in the development of relations between the countries.

"Azerbaijan has invested more than $800 million in the economy of Georgia for the past five years. A subsidiary of the State Oil Company of Azerbaijan (SOCAR), Socar Georgia Petroleum, was the largest taxpayer in Georgia in 2010 and 2011 and became the largest investor by putting $32 million into the country in 2011," Mr Mustafayev said.

He said SOCAR has invested more than $700 million in the economy of Georgia. Azerbaijani companies operating in Georgia contributed to the creation of 7000 jobs, 106 Georgian companies are registered in Azerbaijan and 272 Azerbaijani companies in Georgia. Trade turnover between Azerbaijan and Georgia increased by 36 per cent in 2011.

"SOCAR and other Azerbaijani companies have invested $4.5 billion in the Turkish economy. Trade turnover between Azerbaijan and Turkey increased by 87 per cent in 2011," Mr Mustafayev said.

He went on to say that 967 Turkish companies registered in Azerbaijan and 844 Azerbaijani companies in Turkey.