Reuters reported that Greek natural gas company DEPA got a major boost ahead of its planned privatisation recently after its biggest customer agreed to renew its supply contract and settle disputes.

Greece biggest electricity producer PPC said in a bourse filing it will keep buying gas from DEPA until the end of 2020, procuring between 1.08 billion and 1.54 billion cubic metres per year of the commodity.

In a side deal, PPC will get from the state EUR 32.9 million to waive its buy-option for a 30%stake in DEPA and another 47 million to settle outstanding disputes between the two state controlled companies.

The deal which PPC shareholders must approve on October 4 clears the way for DEPA sale which Greek privatisation agency officials expect to happen in the first half of next year.

DEPA is one of the first big firms to go under the hammer under Greece privatisation plan in which the debt laden country hopes to raise EUR 19 billion by the end of 2015. Fourteen potential buyers including Russian gas giant Gazprom have expressed initial interest.

Source - Reuters

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