Considerable time will be needed before a precise retroactive payment amount can be determined for gas utility DEPA following a favorable verdict by the ICC (International Court of Arbitration) in an overcharging case against Botas, Turkey’s state-run crude oil and gas company.
An initial estimate has put the retroactive amount to be received by DEPA at around 200 million euros.
DEPA claimed the Turkish company has overcharged for purchases – by the Greek utility – of Azerbaijani natural gas delivered through Turkish pipelines since 2011.
Importantly, DEPA stands to secure more competitive purchase prices for Azerbaijani gas until 2023, when the Greek utility’s transmission contract with Botas is due to expire.
DEPA covers approximately 40 percent of the total amount of natural gas it trades through this supply source, meaning the ruling’s favorable impact will be significant.
Meanwhile, DEPA is currently seeking more favorable terms from its two other suppliers, Russia’s Gazprom and Algeria’s Sonatrach.
Improved terms and supply prices promise to help DEPA rebound from consistently contracting market shares as a result of tougher competition over the past two to three years. Better conditions also promise a market boost for the Greek gas utility ahead of its upcoming privatization.