The sale of DESFA and the “Vertical Corridor”

The sale of DESFA and the “Vertical Corridor”

A new round of improved bids is expected to follow in order to declare the preferred investor that will acquire 66% of the National Natural Gas Transmission System Operator.

On Thursday, the board of directors of the Hellenic Republic Asset Development Fund S.A. (TAIPED) called on both contenders to improve the prices initially offered following the opening of the financial offers submitted by the two joint ventures on February 16, when the deadline expired.

It is reminded that two consortia participate in the competition:

  • Snam (Italy) – Fluxys (Belgium) – Enagas (Spain)
  • Reganosa (Spain) – Transgaz (Romania) – European Bank for Reconstruction and Development (EBRD)

Regarding the 66% of the share capital of DESFA put up for sale, 31% is the participation of TAIPED and 35% of HELPE (Hellenic Petroleum).

In the time from February 16 and until today, the Fund has thoroughly assessed all the technical parameters of the candidates’ files, examining each participant separately from the two syndicated schemes -a total of six companies.

As the procedure foresees if the two offers have a 15% difference between them, then the competition will be awarded directly to the higher-priced one.

The aim is to exclude any possibility of future “glitches”, which could have cause problems to the completion of the process, especially after the “wreckage” that was noted, when an effort was made so as to sell DESFA’s majority stake to Azerbaijan, two years ago.

The “Vertical Corridor”

DESFA’s claim is interesting as DESFA is now an integral part of the so-called “Vertical Corridor”.

In September 2017, DESFA established two new working groups for the implementation of the “Vertical Corridor” of gas interconnections between Greece, Bulgaria, Romania, Hungary and Ukraine and the reverse flow into the Trans-Balkan pipeline system together with its counterparts’ managers, with a view to exchanging information and the know-how, for the rapid completion of the project.

It is reminded that in July 2017 the Memorandum of Understanding (MoU) was signed in Bucharest, for the promotion of the “Corridor” between DESFA and Bulgartransgaz, Romania (Transgaz), Hungary (FGSZ) and the ICGB AD, which has undertaken the task of implementing the IGB Greece – Bulgaria interconnector, while, in September 2016, a similar agreement of understanding was signed in Budapest between the managers of Greece (DESFA), Bulgaria (Bulgartransgaz), Romania (Transgaz) and Ukraine (Uktransgaz)…. / IBNA