Greece: MYTILINEOS Units Ink Gas Deal with DEPA

MYTILINEOS Group subsidiaries ALUMINIUM S.A., Protergia S.A. and Korinthos Power S.A. signed with the Public Gas Corporation (DEPA) new agreements for their supply with natural gas, under the “umbrella” of a Joint Management Agreement for all involved plants.

This Agreement, which will remain in effect until the end of 2014, ensures the smooth supply of pipeline gas to meet the needs of the Group’s three thermal power plants, as well as of the thermal consumptions of ALUMINIUM S.A.

The Joint Management Agreement, which the Group concluded with DEPA after many months of negotiations, adds value to both parties.

More specifically, DEPA will supply the Group with a minimum of 850 million cubic metres annually, a quantity that covers nearly 70% of the Group’s needs in Natural Gas.

The Group remains flexible to also make its own imports in order to cover its other needs, constantly assessing the conditions that prevail in the global pipeline gas and Liquefied Natural Gas (LNG) markets.

In addition, by signing the agreement and based on the good cooperation practice between the two parties, a number of pending issues from the past are settled under mutually acceptable and beneficial terms.

At the current prices for Natural Gas, the present value of the Agreement for the entire three-year period stands at nearly 1.4 billion US Dollars.

With this new Agreement, MYTILINEOS Group, the largest independent energy producer in the country (with more than 1,200 MW in operation), is capitalising on its strategic choice to invest in high-efficiency power plants and takes yet another significant step towards reducing the cost of producing electricity from natural gas, to the benefit of the consumers as well as of the national economy.

[mappress]

LNG World News Staff, May 10, 2012; Image: DEPA