Power utility PPC, signaling a change of strategy, is putting an end to long-term agreements for natural gas purchases, as the corporation’s chief executive Giorgos Stasis had pointed out during his recent presentation of the new business plan for 2021 to 2023.
The PPC board, at a session held in mid-December, reached a decision to not renew a nine-year gas supply agreement with gas company DEPA Commercial, sources have informed.
Instead, PPC, preferring flexibility, signed a one-year agreement with DEPA Commercial for a smaller gas amount that will partially cover its overall needs, the sources added.
PPC requires gas quantities to operate its gas-fueled power stations as well as for retail supply to households and businesses.
Despite its short-term nature, the new agreement for PPC, valid for 2021, is competitively priced, the sources noted.
DEPA Commercial is now in a position to offer more attractive supply deals following the recent launch of the TAP project, bringing Azeri pipeline gas into the Greek market. This development has increased supply competition.
PPC aims to transform its electricity production activity into a profit-making venture by 2023. The company is pushing for an operating profit level of of 130 million euros following losses of approximately 200 million euros in 2018 and 2019, Stassis, the CEO, told analysts during his recent presentation of the new business plan.
The gradual withdrawal of lignite-fired power stations, nowadays loss-incurring facilities, and more efficient management of the company’s gas portfolio for electricity production are the main factors that will lead PPC to a turnaround of results, Stassis noted.