Romanian gas transport company Transgaz has teamed up with Spain’s Regasificadora del Noroeste in an attempt to take over its Greek peer DESFA, where the Greek state has put a 66% stake up for sale, profit.ro reported. Romgaz’s bid, filed with Engie’s GRTgaz (formerly Gaz de France), was previously rejected in October as the consortium “failed to meet certain legal provisions”.

As opposed to other investors, Transgaz clearly evaluates DESFA not only in terms of the cash flow it generates but also for the strategic position: negotiations on the Greece-Bulgaria-Romania vertical gas corridor were resumed this year. 

Greece’s gas transport infrastructure would strengthen Transgaz’s position in the vertical north-south gas project aimed at connecting the Trans Adriatic Pipeline (TAP) with Romania and further to Central Europe’s infrastructure.

Transgaz is reportedly ready to pay the same price as that negotiated by Azerbaijan’s Socar for the 66% stake in DESFA, namely €400mn, Agerpres reported last December, quoting Greek daily Kathimerini.

Socar, which abandoned negotiations with Greece on the 66% stake in DESFA, is notably not among the bidders now. The Azeri buyer was reportedly estimating the 66% stake at €260mn, compared to €400mn asked by Greece. Socar revised its bid downward after it accepted the €400mn price tag in December 2013, when Greek officials passed a law hiking the transport fees by a lower amount than expected. 

DESFA reported €170mn revenues and €34mn net profit in 2016.