Azerbaijan's SOCAR Acquires Greek Gas Transmission System Operator

State Oil Company of Azerbaijan (SOCAR) reached an agreement with Hellenic Republic Assets Development Fund (HRADF/TAIPED) for the acquisition of 66% stake in Greece natural gas transmission system operator – DESFA, as recently disclosed by Natural Gas Europe.

“SOCAR has vast experience with natural gas pipeline systems in the Caspian region and is looking forward to start working in Greece as our first project of such type in the European Union,” said SOCAR President Rovnag Abdullayev in a note released on Friday.

Azerbaijan is the rising star of the last weeks. By the end of the month, a BP-led consortium will announce the appointed project to deliver the gas from Shah Deniz II to European markets.

“The decision on purchasing DESFA is in true line with the existing high level bilateral relationship between Greece and Azerbaijan as well as SOCAR and Greece leading energy companies,” commented Abdullayev.

SOCAR is very much interested in exporting gas not only to Greece but also to Bulgaria and other Balkan countries with which it has in the recent past signed memorandums of cooperation. The Greek side emphasized the establishment of projects such as the Interconnector Greece-Bulgaria (IGB), which are underway and supported as main infrastructure projects by the EU, in order to entice the Azeri interests.

Greece sells through the special privatization authority TAIPED, a 31% share in the company, while the remaining 35% is to be sold by the Greek oil company ELPE, which also is taking an active part in negotiations.  ELPE also owns 35% of DEPA, whose privatization ended recently after all competitors and most notably Gazprom exited the process without submitting a binding offer.