Gazprom's Strategy for Acquiring DEPA

Gazprom, through its subsidiary Gazprom Finance is amongst the fourteen international emerge companies participating in the privatization of Greek natural gas company DEPA which is unfolding over the past period.

Lately, Gazprom has speeded up its moves in acquiring a leading role in the competition by relaying through the local media and through its meetings with Greek stakeholders, a variety of advantages that call for the selection of their own proposal, which are centered in terms of energy security and other points of supplementary business nature. It is of interest that Gazprom's strategy in that case, overrides a mere economic outline and strives to counter competition, from the likes of SOCAR, Eni, Sonatrach and others; by playing the card of the mass and traditional gas supplier with a long-term energy supply bonds at mind, regarding DEPA and the Greek market.

More specifically, Gazprom's officials state to their Greek energy counterparts that one of the basic arguments in favor of their company is the fact that it has been a secure supplier, as it was the case of Winter 2011-2012.  During that period Gazprom supplied the Greek marketcwith far greater quantities than agreed for a number of day when the Turkish pipeline system cut off the supply of Azeri gas to Greece, due to the harsh winter conditions that increased dramatically the needs of the Turkish economy.

Gazprom has also stressed its aim to supply the Greek state with gas in all of those regions not supplied yet, such as Islands and mountainous territories that due to reasons of cost are not covered by DEPA.

The main point of Gazprom is that it has the necessary funds to enact a whole range of local infrastructure plans, including micro-LNG terminals and power units, in many islands so as to spread the use of gas in the country and reduce its dependency in oil, a product used extensively for the production of electricity in most Greek Islands which have high needs for energy in the summer season due to mass tourism.

Another interesting facet proposed by Gazprom is its interest of investing in local infrastructure works related to energy and providing contracts to local companies. In parallel, in order to make to make greater the incentive for choosing Gazprom for DEPA, the former promises a reduction in gas prices under a new 30 year contract and the construction of gas depots across the country.

Another subject of interest as being expressed by the Russian company, is the provision of “Social Responsibility” investments in Greece, in a wide range of charities, NGO's, the health and educational sector, as a kind of an offset to the country. Already Gazprom has enacted scholarship programs in Poland, cultural ones in Serbia, charity work in Austria and artistic in Germany.

Lastly, the company through its Gazprom Finance arm assures it has the financial back-up to provide various credit lines for infrastructure projects to the ailing Greek economy which is in dire need of foreign investments.

For the time being, Gazprom is gearing its efforts to acquire a leading position in the Greek market through DEPA, and its public relation plan, includes cooperation with the largest PR-lobbyist company in Southeastern Europe, along with a series of high-level meetings with all leading Greek politicians, Ministerial state figures, businesspersons, energy experts and research centers.

Lastly, it is confirmed by the Greek Ministries of Development and Energy that a state delegation from Moscow will arrive in Greece by December to lay down in the table a thorough offer regarding Gazprom, who is also eying through its Gazprom Neft arm, the ELPE state oil company.