Greek Gas Supplier Seeks Price Revision from Gazprom

DEPA Commercial Files for Arbitration Against Gazprom

Legal Action for Price Adjustment

The Greek gas supplier DEPA Commercial has taken the bold step of filing for arbitration to request a price revision on its gas supply contract with Gazprom. According to DEPA CEO Constantinos Xifaras, the company is seeking a retroactive reduction in the gas price stipulated in the 2022 contract with Gazprom. Sources familiar with the matter reveal that DEPA is also seeking relief from future payments amounting to hundreds of millions of dollars.

Negotiations and Arbitration

DEPA has been engaged in negotiations with Gazprom for approximately two years, with a focus on price readjustment. While commercial discussions are ongoing, DEPA has escalated the matter by initiating arbitration proceedings to address the pricing issues. Gazprom has not yet responded to requests for comment, and DEPA has not elaborated on the details of the arbitration process.

Market Dynamics and Contract Terms

In January 2022, DEPA signed a contract with Gazprom for the supply of 2 billion cubic metres of gas annually until 2026. The pricing of the gas is linked to the Dutch TTF price and oil prices. However, the volatility in European gas prices following geopolitical events has impacted DEPA’s ability to fulfill its contractual obligations, leading to potential penalties under the take-or-pay clause.

Concerns and Allegations

DEPA is also concerned about Gazprom’s sales to its competitors at lower prices, potentially hindering DEPA’s ability to consume the agreed-upon gas volumes. Reports suggest that Gazprom has been exporting liquefied natural gas to Greece, with one of the buyers being Mytilineos, a major energy company in Greece with its own long-term contract with Gazprom.

Despite the complexities of the situation, DEPA’s decision to pursue arbitration reflects its determination to address the pricing discrepancies and secure a fair resolution.