Business News
EU probes Gaz de France over gas imports (Roundup)
By DPA
May 22, 2008, 13:53 GMT

Brussels/Paris - The European Commission on Thursday placed Gaz de France (GDF) under investigation over claims the company violated European Union competition rules by deliberately limiting the amount of gas that can be imported into France.

In a statement, the EU executive said the probe would focus on suspicious 'behaviour which may prevent or reduce competition on supply markets for natural gas in France.'

Officials in Brussels said EU inspections carried out on the company's premises in 2006 had raised concerns that GDF had 'deliberately' limited the amount of investment needed to increase gas imports from Algeria, Russia or other foreign suppliers.

'The initiation of proceedings does not imply that the commission has proof of an infringement. It only signifies that the commission will conduct an in-depth investigation of the case as a matter of priority,' officials stressed.

GDF said, in a press statement, that 'the supply of natural gas in France has seen the emergence of a large number of competitors,' and noted that 44 gas suppliers currently operated on the French wholesale market.

'These players enjoy access to the different infrastructures owned by Gaz de France or its subsidiaries under transparent and non-discriminatory conditions,' the company said.

GDF also said that the development of gas infrastructures had been 'substantially speeded up in recent years,' with investments of some 1.5 billion euros (2.37 billion dollars) in this area in 2007 alone.

The company vowed to cooperate with the European Commission enquiry into the matter.

If found guilty, GDF risks a fine of up to 10 per cent of its annual turnover. There are no strict deadlines for the EU probe.