DEPA Commercial Seeks Arbitration for Gas Price Revision with Gazprom
DEPA Commercial Initiates Arbitration
Greek gas supplier DEPA Commercial has initiated arbitration to request a price revision on its gas supply contract with Gazprom, as confirmed by DEPA CEO Constantinos Xifaras. The company, controlled by the Greek state, aims to retroactively lower the gas price in the 2022 contract and seek relief from future payments amounting to hundreds of millions of dollars.
Negotiations and Arbitration Process
Xifaras mentioned ongoing negotiations with Gazprom for over a year and a half regarding price adjustments. Despite continuous commercial discussions, DEPA has now escalated the situation by resorting to arbitration. Gazprom has not yet responded to requests for comments, and DEPA is currently unavailable for further details on the arbitration process.
Contract Terms and Market Challenges
In January 2022, DEPA signed a contract with Gazprom for 2 billion cubic meters of gas annually until 2026, indexed to the Dutch TTF price and oil prices. The European gas market witnessed price spikes due to geopolitical events, leading to DEPA’s struggles in selling gas and meeting minimum annual requirements under the contract.
Concerns and Claims
DEPA’s claims also involve Gazprom’s sales to Greek competitors, affecting the company’s ability to fulfill its gas obligations. Notably, Gazprom began exporting liquefied natural gas to Greece in significant quantities from its Portovaya LNG project, with Mytilineos being a major buyer with a contract extending to 2030.
Industry Responses
Mytilineos refrained from disclosing specific details on its purchases from Gazprom, citing commercial sensitivity. The situation highlights the complexities and challenges faced by gas suppliers and buyers in a volatile market environment.
