Greek Energy Min.: DEPA Commercial agreement with TotalEnergies will ensure energy sufficiency

An agreement signed by Greece’s DEPA Commercial and the French company TotalEnergies for the supply of Liquified Natural Gas (LNG) is a decisive step for ensuring a sufficient energy supply for the country the flow of natural gas from Russia is reduced or stopped entirely, the environment and energy ministry announced on Thursday.

“With this strategic agreement, the national goal set by the government for the country’s energy sufficiency and a gradual weaning from Russian natural gas is achieved. The agreement is being implemented ahead of a difficult winter in energy terms for all of Europe, not only because of the international surge in prices but also the fear of power and heating cuts throughout the continent,” the ministry said.

The agreement envisages LNG deliveries by two LNG freighters a month, with a total load equivalent to 10 TWh for the next five months, between November 2022 and March 2023.

Greece is buying LNG at a different benchmark rate than the TTF benchmark price, which is highly volatile, and also retains the right to not accept delivery of shipments if they are deemed unnecessary with the payment of a cancellation fee.

“This agreement seals the coordinated actions of the government, via the environment and energy ministry, and DEPA Commercial for the energy shielding of the country. Given that more than 70 pct of imported natural gas in Greece is used for producing electricity, its unobstructed supply, secured through a series of agreements, guarantees the steady coverage of the country’s energy needs, even if supply from Russia is reduced,” the ministry said.

Greece has already reduced its dependence on Russian natural gas to 34 pct (from 45 pct in 2021) in the first half of 2022, increasing imports of LNG via Revythoussa to 44 pct of total natgas imports.