SOCAR"s chances to buy DEPA"s assets grow

The buyer of DEPA should fully observe competition in the EU and local market rules, a source from the European Commission (EC) told RBC Daily. "It is important to protect interests of the Greek consumers," said representative of the EC.

If Russian Gasprom company wins the bid, it will buy its own gas, which is not the cheapest, said Mikhail Korchemkin, President of consulting company East European Gas. Construction of numerous expensive gas pipelines will lead to growth of gas transportation costs and as a result of that the Russian monopolist will be forced to raise price for its own fuel for the Greek consumers.

Korchemkin believes that Russian gas costs higher on the Greek border, than liquefied natural gas (LNG) - about $480 per 1000 cub.m. against about $450 during first six months last year.

In 2011 Gasprom's deliveries to Greece totaled 2.9 billion cub.m. of gas. In additional to Gasprom, fuel is delivered to Greece by Azerbaijani SOCAR and Algerian Sonatrach (LNG). Gasprom Export also owns 50% share in Greek Copelouzos -Prometheus Gas JV, which is involved in construction of the energy objects, including local gas pipelines.

Since 2011 SOCAR takes part in the privatization of 65% state share of DEPA. In November 2012 SOCAR President Rovnag Abdullayev told journalists that the company continues fighting in the "bid race." According to some estimates, if in mid-2013 Azerbaijan selects the trans-Adriatic pipeline (Greece-Albania-Italy) as the main route of its gas deliveries to Europe, then SOCAR's chances to buy DEPA's assets will grow, because it will have a chance to deliver its own share of gas to Greece at a better price.-0--