PPC mazut, diesel order for 2021 at €580m, reduced figure

Power utility PPC’s total cost, in 2021, concerning mazut and diesel orders needed to cover the company’s electricity generation needs at facilities on islands, lignite-fired power stations and mining machinery has been estimated at 580 million euros, according to figures presented by chief executive Giorgos Stassis to parliament’s Standing Committee on Production and Trade.

PPC plans to be supplied a total of 820,000 metric tons of low-sulfur mazut order in 2021 for its generators on islands. More than a quarter of this amount, or 240,000 metric tons, will be directly delivered to its Atherinolakkos unit in southeastern Crete.

PPC staged a three-round tender early this year for low-sulfur mazut orders covering April 1, 2021 to March 31, 2022, to be shipped to its facilities in coastal Lavrio, southeast of Athens, and Atherinolakkos, Stassis, the CEO, told the committee.

Initial offers were submitted by a total of ten bidders, of which two emerged as preferred bidders, PETROINEOS TRADING LTD, to supply 580,000 metric tons of mazut to PPC’s Lavrio facility, and CORAL ENERGY PTE, to supply 240,000 metric tons to the Atherinolakkos unit.

The total cost of PPC’s orders from both suppliers is 11.2 million dollars less than the power utility’s order for 2020 and 4.2 million dollars less than the 2019 order, the chief executive informed.

PPC signed an extension to an existing diesel supply agreement with EKO, now expiring December 31, 2021, Stassis informed. The total cost of PPC’s diesel orders in 2021 has been estimated at 250 million euros, not including VAT.