DEPA Trading has signed an agreement with France’s TotalEnergies for the supply of liquefied natural gas (LNG), the Ministry of Environment and Energy announced, noting that this is a crucial step toward ensuring energy security in the event of a reduction or even a complete halt in natural gas supplies from Russia.
«This strategic agreement achieves the national goal set by the government for the country’s energy self-sufficiency and its gradual reduction of dependence on Russian natural gas. The agreement is being implemented in anticipation of a difficult winter for the entire European energy sector, not only due to the global surge in prices but also amid fears of power and heating outages across nearly the entire continent,» the Ministry of Environment and Energy emphasizes.
The agreement provides for the supply of LNG via two liquefied natural gas carriers per month, with a total cargo volume equivalent to 10 TWh over the next five months, that is, from November 2022 through March 2023.
Greece will purchase LNG at a reference price different from that of the TTF hub (which currently serves as the reference price for Europe), which is highly volatile, while retaining the option to refuse delivery of shipments if they are deemed unnecessary, subject to the payment of a cancellation fee.
«This agreement underscores the coordinated efforts of the government, through the Ministry of Environment and Energy and DEPA Trading, to ensure the country’s energy security. Given that more than 70% of the natural gas imported into Greece is used for electricity generation, its uninterrupted supply—secured through a series of agreements—guarantees the stable coverage of the country’s energy needs, even with reduced supplies from Russia,» the Ministry of Environment and Energy states.
It should be noted that, as early as the first half of 2022, Greece’s dependence on Russian natural gas had already decreased significantly, as its share of natural gas imports stood at 34% (compared to 45% during the same period last year). At the same time, imports of liquefied natural gas (LNG) have increased significantly (up 50% year-over-year). LNG imports from Revythousa account for 44% of total natural gas imports, compared to 31% last year.
Following the signing of the agreement, the Minister of Environment and Energy, Kostas Skrekas, issued the following statement: «The agreement between DEPA Trading and TotalEnergies for the supply of liquefied natural gas from November 2022 – March 2023 is a decisive step toward ensuring our country’s energy security. It secures an additional energy reserve of approximately 10 TWh during the winter period, making Greece one of the most energy-secure countries in Europe. »The government will continue its efforts to ensure an uninterrupted energy supply throughout the country during this period of acute energy crisis affecting all of Europe.”.
The CEO of DEPA Trading, Konstantinos Xifaras, stated: «Since the onset of the energy crisis and by leveraging its strategic planning, DEPA Trading, in close cooperation with the government and the relevant minister, Mr. Skrekas, has been taking steps and entering into agreements—such as the one with France’s TotalEnergies—that ensure the country’s uninterrupted energy supply.».
