Monday September 1, 2014 Search
Weather | Athens
29o C
23o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Greece's DEPA to get backdated gas price cut from Gazprom, say sources

By Harry Papachristou

Greece and Russian energy giant Gazprom will soon announce a new gas supply deal including price cuts backdated to last June, sources said on Thursday.

Gazprom is the biggest supplier of Greece's state-run natural gas distributor DEPA. The two sides have been in talks for months, with DEPA seeking a cut of between 15 and 20 percent in the gas supply price and threatening to go to arbitration if there is no agreement.

"We consider that this will be a done deal in the next few days. The lower prices will apply retroactively from June 2013," a Greek ministry official said on condition of anonymity. Gazprom declined to comment.

Greece is keen to reduce its industry's energy costs to help to shield it from the effects of the country's deep six-year recession that has led to a wave of corporate bankruptcies and unemployment of 28 percent

According to another source close to the talks, an outline agreement struck at company level between DEPA and Gazprom last month also got a green light at government level after a meeting between Russian President Vladimir Putin and Greek Prime Minister Antonis Samaras.

The Greeks are now just pressing for marginal improvements, on price or quantities, and are no longer considering going to international arbitration.

"The initial agreement also extends to government level now, so there's no question of arbitration any more," the source said.

According to the second source, the price initially agreed will be below $400 per 1,000 cubic metres of gas, down from the $470 DEPA pays now. The energy ministry source declined to elaborate on the level of the price, saying that it will continue to be linked to oil prices.

The current deal, which expires in 2016, will be extended to 2026, with Gazprom to supply DEPA between 2.5-3 billion cubic metres a year.

Combined with a recent, five-year supply agreement over 1 bcm between DEPA and Azeri consortium Shah Deniz, the Gazprom deal secures DEPA's supply for years to come and may increase its value ahead of its planned privatization, the source said.

"This agreement gives DEPA flexibility to cope with Greece's economic crisis and increases its market value, the source said. DEPA, whose planned privatization failed in 2013, will be re-launched this or next year. [Reuters]

ekathimerini.com , Thursday February 20, 2014 (14:58)  
Prospect of Greek grand prix back on the agenda; huge investment needed
Juggling lighter tax burden and fiscal targets
Government tries to get handle on NPLs
Fuel tax cut would spark illicit trade, says sector expert
Greek officials meet to fine tune strategy for Paris talks with troika
Greek Prime Minister Antonis Samaras will meet with his coalition partner, PASOK leader Evangelos Venizelos, and Finance Minister Gikas Hardouvelis on Monday ahead of crucial two-day talks w...
Large fire in Crete brought under partial control
A large fire that began in the early hours of Saturday in Hania, Crete, was brought under partial control on Sunday by a large force of firefighters who battled the blaze through the night. ...
Inside News
SOCCER
Fulham striker Mitroglou set to re-join Olympiakos
Greek champions Olympiakos Piraeus are set to re-sign Kostas Mitroglou on loan from English second tier club Fulham after the striker arrived in Athens for talks on Sunday. An Olympiakos spo...
SOCCER
Tough draw for Greek sides in Europa League group stage
Following Thursday nights high, when all three Greek teams competing in the Europa League made it into the group stage of the competition, a harsh reality struck Friday as they found out wh...
Inside Sports
COMMENTARY
A great president
I fully understand the countrys need for political stability, a necessity which makes the election of a president by the current Parliament absolutely imperative. At the same time, however,...
EDITORIAL
Dont feed the zombies
There can be no growth without resolving the issue of nonperforming business loans. However, the solution to this problem should not be based on old establishment criteria, such as political...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. Greek officials meet to fine tune strategy for Paris talks with troika
2. Fulham striker Mitroglou set to re-join Olympiakos
3. Large fire in Crete brought under partial control
4. Prospect of Greek grand prix back on the agenda; huge investment needed
5. Juggling lighter tax burden and fiscal targets
6. Government tries to get handle on NPLs
more news
Today
This Week
1. A great president
2. Dont feed the zombies
3. Greek officials meet to fine tune strategy for Paris talks with troika
4. Prospect of Greek grand prix back on the agenda; huge investment needed
5. Juggling lighter tax burden and fiscal targets
6. Fuel tax cut would spark illicit trade, says sector expert
Today
This Week
1. Attack on gay couple in Athens leaves one man needing surgery
2. The battle against progress
3. Thessaloniki mayor Boutaris sworn in wearing yellow star amid Golden Dawn protests
4. Strong undersea quake occurs off island of Milos, felt in Athens
5. Greek quest for debt relief faces hurdles in Paris
6. Hardouvelis, ECB executive discuss bank program, stress tests
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2014, H KAΘHMEPINH All Rights Reserved.