Page 4 - GLNG Week 08

GLNG COMMENTARY GLNG
Greece pushes ahead towards gas goals
Greece is continuing with the privatisation of its natural gas sector, while also developing new infrastructure to establish itself as a regional hub for gas trade
POLICY
WHAT:
Greece is preparing to privatise more of its gas industry.
WHY:
The move will dovetail with Greece’s plan to establish itself as a gas hub.
WHAT NEXT:
Greece’s plans for a second LNG terminal could flounder, given uncertainties surrounding future European demand.
GREECE is continuing with the privatisation of its natural gas sector, while also developing new infrastructure to establish itself as a regional hub for gas trade.
The country’s state privatisation agency, the Hellenic Republic Asset Development Fund (HRADF), on February 21 announced it had received expressions of interest (EoIs) from nine parties regarding the sale of 100% of DEPA Infrastructure, in charge of the company’s distri- bution network. Six Western investments firms – Antin Infrastructure Partners, EP Investment Advisors, First State Investments, Isquared Capital Advisors, KKR and Macquarie – filed EoIs. Two more bidders were Chinese: China Resources Gas and a consortium comprising SINO-CEE Fund and Shanghai Dazhong Public Utilities. The final offer came from Italy’s Italgas.
The high turnout would appear to vindi- cate DEPA Infrastructure’s investment strategy, which called for €400mn ($438mn) to be spent on developing a series of pipelines and other infrastructure to connect Greece with the wider Southeast European region over the next five
years. The appearance of reputable names such as KKR and Macquarie is also an encouraging sign.
The next stage will invite the partners to sub- mit binding offers for DEPA Infrastructure, and Greece aims to close a sale by the end of the year. HRADF has a 65% stake in the utility, while its remaining equity is held by state-run Hellenic Petroleum.
HRADF also invited companies on January 23 to submit EoIs for the sale of DEPA Commer- cial, which operates the country’s gas wholesale and retail activities, setting a deadline of March 6.
Having emerged from its third international bailout in 2018, Greece was required to sell gas utility DEPA under a deal with its European lenders and the International Monetary Fund (IMF). Its parliament passed legislation in November last year to break up the company into its different divisions, to open the Greek gas market to competition and help attract investors.
DEPA International Projects, which man- ages cross-border infrastructure developments
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w w w . N E W S B A S E . c o m Week 08 28•February•2020