Russian gas out, US LNG in: local firms sign deals

The determination of the European Union to end all Russian natural gas imports as of 2028 has now been set in stone and Greek companies are already gearing up to meet their requirements by signing contacts for the purchase of American liquefied natural gas (LNG) from that year on.

Within two years Greece is required to replace 45% of its total natural gas imports currently covered by Russian imports, corresponding to quantities of around 3.5 billion cubic meters of gas per year. This is the major challenge for the country and the two companies, DEPA and Metlen, which maintain long-term supply contracts with Gazprom.

However there also are opportunities that are linked to the export possibilities that are opening up for Greece and Greek companies, and the upgrading of the country’s role as an LNG transport hub in the Central and Eastern European region.

The end of Russian gas will create a deficit of around 16 billion cubic meters of gas in the wider region, which will have to be replaced with LNG, with the US, the big seller, seeing Greece and its infrastructure as a conduit for the transport of American LNG on the axis from Bulgaria to Ukraine and west to Hungary and Austria.