DEPA Commercial, Greece’s biggest gas importer reached a deal with France’s TotalEnergies for the supply of 10 Terawatt hour (TWh) of liquefied natural gas (LNG) over the winter, announced the Greek Ministry for Energy in a statement.
The price was not disclosed, but the ministry said Greece would buy the gas at a benchmark price rather than the highly volatile TTF price. TotalEnergies will supply Greece with two LNG cargoes a month for five months until March 2023, however, Greece reserves the right not to purchase the gas but pay a cancellation fee.
“The agreement is a decisive step for the energy sufficiency of our country,” said the Greek Minister of Environment and Energy, Kostas Skrekas adding that the government will continue its efforts to ensure uninterrupted energy supply.
The Managing Director of DEPA, Konstantinos Xifaras underlined that the deal is a crucial step to ensure energy security in case Russian gas flows are interrupted or reduced.
Greece has been receiving Russian gas via the TurkStream pipeline which also delivers to Hungary via Serbia, but Athens has cut Russian gas imports significantly this year in line with the European Union’s plan to cut dependence on Russian energy.
Thanks to increased deliveries from other producers to its LNG terminal in Revithoussa, already in the first half of 2022, Greece saw the import of gas from Russia dropping from 45 per cent to less than 34 per cent, according to the ministry of energy.
Last year, Greece imported 35.37 TWh of gas from Russia, which means that the volume stipulated in DEPA’s current agreement with TotalEnergies is nearly one-third of the Russian gas that arrived in Greece last year.