The final stage of a tender held by the power utility PPC for an initial shipment of 130,000 cubic meters of LNG, contested by 14 suppliers, including major international players, will be completed today with the submission of binding offers.
The contestants are: Centrica LNG Company Limited; Eni Trading & Shipping SPA; DEPA; Gunvor International B.V; Μ & Μ/Trafigura PTE LTD Consortium; Vitol; Trafigura; Shell International Trading Middle East LTD (SITME); Tellurian Trading UK LTD; Cheniere Marketing International LLP; Uniper; Powerglobe (LLC) Qatar; MET International AG & Aegean Net Fuels LTD FZE Consortium; and Socartrading SA.
PPC signed a Master Sale & Purchase Agreement with the aforementioned players early this month, standard practice in the international gas market, ahead of the tender’s final round.
The PPC tender for LNG was prompted by lower international prices compared to pipeline-delivered natural gas supply.
The power utility, preparing to enter Greece’s natural gas market for household and industrial supply in September, is seeking the best possible wholesale deals in an effort to offer competitive retail prices.
PPC has reserved storage capacities at gas grid operator DESFA’s LNG terminal on Revythoussa, an islet of Athens, for two shipments totaling 230,000 cubic meters, or 1.7 million MWh, on July 6 and August 24.
The power utility’s natural gas needs this year for five power stations, alone – Aliveri V, Megalopoli V, Lavrio IV and V, Komotini – total approximately 16.2 million MWh.
PPC had last made LNG purchases, a total of six shipments, during 2010 and 2011.