Azernews.Az

By Gulgiz Dadashova

Belgian company Fluxys refused to buy a share in Greek gas transmission network operator DESFA’s 66 percent controlling stake, which is to be bought by Azerbaijan’s state oil company SOCAR.

Greek Ekathimerini reported on March 28 citing unnamed sources that Fluxys departed from talks on the issue.

The Belgian company has reportedly abandoned its plan to purchase 17 percent shares of DESFA, the source reported, adding that the company still supports the Trans Adriatic Pipeline (TAP).

In 2013, SOCAR won the international tender for the acquisition of 66 percent of DESFA shares for 400 million euro. However, the European Commission launched a revision of this transaction on competition issues.

In 2015, the Greek government offered SOCAR to sell a 17 percent stake of DESFA shares to third parties. For the completion of the sale of the 49 percent controlling stake in DESFA to SOCAR, 17 percent must be sold to a European Union firm, with the SOCAR also having a say in the selection of the new stakeholder.

Snam from Italy, Fluxys from Belgium and Enagas from Spain voiced interested in acquisition of this stake in DESFA. An informal interest in DESFA has been expressed by Dutch company Gasunie.

In late 2015, the Hellenic Republic Asset Development Fund (HRADF) announced that it received a formal proposal from Fluxys-Enagas alliance and Italian company Snam to buy a 17-percent stake in DESFA.

SOCAR is the sole producer of oil products in Azerbaijan. It has two oil refineries and filling stations in Azerbaijan, Georgia, Ukraine, Romania and Switzerland. The company is the co-owner of the largest Turkish petrochemical complex, Petkim, and other assets in Turkey.

TAP is meant to transport natural gas from the giant Shah Deniz 2 field in Azerbaijan to Europe. The approximately 870 km long TAP will connect with the Trans Anatolian Pipeline (TANAP) at the Turkish-Greek border at Kipoi, cross Greece and Albania and the Adriatic Sea, before coming ashore in southern Italy.

TAP’s construction is expected to start in 2016. Its initial capacity will be 10 billion cubic meters of gas a year. TAP’s shareholders are BP (20 percent), SOCAR (20 percent), Snam S.p.A (20 percent), Fluxys (19 percent), Enagás (16 percent) and Axpo (5 percent).

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