European consortium wins tender to gain 66% in Greek gas grid operator

A consortium comprising Italy’s Snam has won a tender for the acquisition of a 66% stake in Greek national natural gas grid operator DESFA for €535m.

Snam holds a 60% interest in the consortium, while the remaining partners include Spain’s Enagás (20%) and Belgium’s Fluxys (20%).

The tender was conducted by Greek privatisation agency TAIPED.

With a network of around 1,500km, DESFA transports gas from Greek-Bulgarian and Greek-Turkish to consumers in mainland Greece.

The national operator also has a regasification terminal at Revithoussa in Greece.

In a statement, Snam said: “Thanks to its strategic position in the Mediterranean, Greece could represent an important crossroads for the diversification of supplies and the opening of new natural gas routes in Europe.”

The consortium aims to strengthen the Greek gas infrastructure system in a bid to fully realise the potential of the country as a natural gas hub.

In addition, Snam, along with its partners in the consortium, intends to transfer technical and operational capabilities to DESFA, and develop new applications and sources of natural gas to help the country in its emission reduction process.

Last year, DESFA’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) stood at around €177m.

Negotiations are underway with Greek and international banks to secure financing for the acquisition.

Subject to certain conditions, the transaction is expected to be completed in the second half of the year.