Snam in consortium with Enagás and Fluxys has completed its €535m acquisition of a stake of 66% in DESFA, a Greek natural gas transmission system operator (TSO), from the Hellenic Republic Asset Development Fund (HRADF) and Hellenic Petroleum.
DESFA is the owner and operator of a high pressure transport network of nearly 1,500km and also a regasification terminal at Revithoussa.
Snam, which is an Italian natural gas infrastructure company, has a 60% stake in the consortium that was awarded the tender for the privatization of the national natural gas operator in April 2018. Enagás, a Spanish energy company and European TSO, and Belgium gas infrastructure group Fluxys, hold stakes of 20% each.
The consortium acquired the stake through Senfluga Energy Infrastructure and has secured a non-recourse acquisition financing for more than 10 years corresponding to nearly 65% of the enterprise value.
According to Snam, Greece is a major crossroad for diversification of supplies and with the opening of new natural gas routes in Europe, has an increased development potential as a hub in South-East Europe.
Snam, in a statement, said: “The consortium will also promote natural gas innovation in Greece, will foster the introduction of renewables gasses such as biomethane in order to create a sustainable energy system, and will make an active contribution to the reduction of the country’s emission of both harmful pollutants and greenhouse gasses.”
Apart from holding stake in the DESFA, Snam, Enagás and Fluxys are partners in the 878km long Trans Adriatic Pipeline (TAP), which brings natural gas from the Shah Deniz II field in Azerbaijan to Europe. The three firms put together have a stake of 55% in the €4.5bn TAP pipeline, which will connect with the Trans Anatolian Pipeline (TANAP) at the Turkish-Greek border at Kipoi, pass through Greece and Albania and the Adriatic Sea, before reaching ashore in Southern Italy.
Earlier this week, DESFA signed an agreement with TAP on the maintenance of Greek portion of the inter-country pipeline. As per the agreement, DESFA will be responsible for the maintenance of TAP facilities located along the 550km of the Greek stretch of the pipeline, which begins from Kipoi in Evros near the Greek-Turkish border, to Ieropigi, Kastoria, on the Greek-Albania border.