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  • DEPA negotiates with Gazprom for lower natural gas prices

    The negotiations between DEPA and Gazprom for reduced prices for the supply of natural gas will be completed by the end of the year.

    According to a senior officer involved in the negotiations, a deal with the Russian company in October seems likely, indicating that the Wednesday meeting in Moscow was promising.

    At yesterday’s meeting the Greek side demanded that prices be reduced to the average prices paid by Western European countries, which would entail cuts over 20% to the current prices.

    While the average price for countries in Western Europe is 390 USD per 1,000 cubic meters, Greece has being paying a 23% mark up (480 USD per 1,000 cubic meters) for natural gas.

    DEPA has demanded that the prices be reduced by at least 20% until the current contract ends in 2016. The Greek side has warned that unless the Russian company complies, it will resort to international arbitration. German firm RWE also resorted to international arbitration in the past and was successful.

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