Demand outweighs supply at DEPA annual gas auction

Demand easily outweighed supply at the annual gas auction held by DEPA, the Public Gas Corporation, last Friday, pushing prices up at a session through which a total of 1,980,000.032 MWh were offered in 50,000 units, each comprised of 39,600 MWh. Supply has never before failed to meet demand at the DEPA auctions.

Holders of gas supply permits and a select group of major-scale industrial enterprises were all entitled to take part in the auction.

According to energypress sources, prices at the auction, which began at midday and had been completed half an hour later, rose by between 0.2 and 0.3 dollars per MWh as a result of the strong demand.

Individual bidders were entitled to vye for up to 15 percent of the total, down from 25 percent last year.

According to market estimates, the country’s regional gas supply companies (EPA) made offers for 30 percent of the amount on offer through the auction.

Among the select major-scale industrial enterprises, the aluminium producers Aluminium of Greece and ELVAL, as well as the glass industry Yioula all purchased gas quantities through Friday’s DEPA auction. As was also the case last year, fertilizer producer ELFE did not participate. The bidders whose offers were not covered by the auction’s supply remain unknown.

The competition committee, which allowed DEPA to offer 60 percent of its total annual gas supply to the Greek market through this year’s auction, up from 50 percent last year, noted it will examine the auction’s results to determine whether any revisions are necessary.

If new suppliers, now seeking to enter the market following the gas market reforms, were among the bidders who failed to purchase gas quantities through the auction, then correctons will need to be made as swiftly as possible.