The privatization of the national gas transmission system operator (DESFA) has stalled, with Greece being pressured by its international creditors to accept a compromise and complete the deal.

At present time is not on the Greek government’s side, as SOCAR’s letter of guarantee expires at the end of September, while the Azeri side appears to be ready to abandon the deal.

The Greek government however is not in the position to reduce the price or alter any other terms of the tender, therefore if it cannot reach an agreement with SOCAR, the privatization may be in jeopardy. Should the deal with SOCAR fall through, it is highly probably that SNAM will also back out.