By strategic agreement between them DEPA and his French giant TotalEnergies for the supply of 10 batches of LNG in the responsible five months from November 2022 to March 2023 Hellas completely shielded in the event of a decrease or complete interruption Russian gas and lays the foundation for her gradual adaptation to Russia.

Agreement announced yesterday Ministry of Environment and Energy concerns DEPA LNG deliveries from TotalEnergies with two loads per month during the five winter months, corresponding to 10 TWh.

The volumes correspond to about 1/7 of the annual consumption of natural gas (70 terawatt-hours in 2021) and, according to competent sources, replace almost 100% of Russian gas imports not only for DEPA, but for the country as a whole. . DEPA imports from Gazprom on the basis of a long-term contract about 2 billion cubic meters. of gas per year, and at 1 billion/km, the quantities imported by Mytiineos, the Kopelouzo group and PPC are summed up.

It is also noteworthy that the contract does not specify the price of natural gas with the reference TTF of the Netherlands, which, as the head of DEPA said Kostas Gifarason the occasion of the ongoing debate in the European institutions on ceiling overlay“no longer reflects the balance of supply and demand.”

DEPA reserves the right not to collect the shipment if it is deemed unnecessary by paying a fee to a French company. The contract is under the country’s security of supply, which means that in the event we don’t need the LNG, DEPA will be compensated for the fine it pays to TotalEnergy through a supply assurance fee paid by users of the natural gas system.

Greece is fully protected in the event of a reduction or complete cessation of Russian gas supplies.

The risk of such a cost is fully justified by the tense conditions of recent days in the geopolitical and energy arena.

The contract with Total provides the country, even in conditions of great instability and tightness, with the LNG cargoes necessary for the uninterrupted supply of the market at prices significantly lower than those that will form on the spot market in the conditions of the complete cessation of Russian gas. It should be noted that already in the first half of 2022, Greece’s dependence on Russian natural gas decreased to 34% (against 45% in the same period last year). At the same time, LNG imports from Revitusa increased significantly (an increase of 50% year on year), accounting for 44% of total natural gas imports compared to 31% last year.

DEPA Director General Kostas Gifaras pointed to the strategic importance for the country’s energy security. “From the very beginning of the energy crisis and using its strategic planning, DEPA Emporias, in close cooperation with the government and the responsible minister, Mr. Skrekas, has been taking steps and agreements, such as the agreement with the French TotalEnergies, which will ensure uninterrupted energy supply to the country,” he stressed.

Yesterday’s statements by the head of the International Energy Agency (IEA) Fatih Birol fully confirm the correctness of the Greek government’s decision to freeze LNG cargoes in advance. LNG markets in 2023 are likely to be “tougher” than this year as demand could increase in China, India and other parts of Asia, he said, warning that “if the Chinese economy recovers, it will be very difficult for Europe to attract that much LNG ”, previously referring to a 60% increase in LNG imports this year.

Moreover, according to Bloomberg estimates, the sabotage of Nord Stream increases Europe’s need for LNG by 90%. This will mean a real war between Europe and Asia for cargo, which will lead to new records.

“Battle” for a place in Revitus

Demand for slots at Revitus facilities is expected to pick up ahead of the annual auction in 2023. For the first time, major international traders such as Vitol have requested auction licenses from the RAE, and authorities estimate that US companies are also showing up. There has also been increased interest from Bulgarian and Romanian companies, as well as the Austrian OMV, besides of course the Greek groups (DEPA, Mytilineos, Elpedison, Hron, PPC) who also see opportunities to export to neighboring countries. Competition for a place in Revitus was caused by Bulgaria’s decision to tender for the supply of LNG consignment corresponding to 16 TWh, which will be transported by the reverse of the existing Greek-Bulgarian pipeline.

The strong interest of foreign companies in exports via Revitusa, which would normally be particularly positive, is currently a concern as the domestic market could be left unloaded. In an attempt to manage this risk, the RAE has rescheduled the DESFA auction to October 17 to amend the code by introducing some precautionary measures, such as increasing penalties for non-use of slots and limiting fuel gasification time to 6 out of 18 days. However, the fact that some Greek companies such as Mytilineos and Elpedison have reserved positions since last year and for 2023, in the context of the five-year auctions organized by the RAE for the first time, offers relative relief to the competent Greek authorities.