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06.11.2014 14:42
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The European Commission has opened an in-depth investigation to assess whether the proposed acquisition of the Greek gas transmission system operator DESFA by the State Oil Company of Azerbaijan Republic (SOCAR), is in line with the EU Merger Regulation.
SOCAR's activities include the production of natural gas and the upstream wholesale sale of gas in Greece in the context of the Southern Gas Corridor. DESFA owns and operates Greek's sole high-pressure gas transmission and Greece's only LNG terminal and mainly transports gas through its network. In a statement released Thursday, the Commission expressed concerns that the transaction might reduce competition on the upstream wholesale supply market for natural gas in Greece because it could allow the merged entity to hinder SOCAR's competitors in accessing the Greek gas transmission network.
The Commission aims to ensure that the sale of DESFA, part of the Greek government privatisation programme with a view to modernise and liberalise the energy markets, does not result in competitive harm and ultimately higher gas prices for consumers in Greece. The opening of an in-depth inquiry does not prejudge the outcome of the investigation. The Commission now has 90 working days, until 23 March 2015, to take a decision.
Recently, SOCAR has strengthened its presence in the region by moving forward with plans to build a petrochemical refinery in neighbouring Turkey, for which the Azerbaijani company secured a 3.29 USD-loan.
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