The embattled country imports most of its oil and natural gas and an exit from the EU is likely to put increasing pressure on the price of its energy.
Oil has been the dominant energy source in Greece and accounted for around 45% of the country’s total primary energy supply in 2012, according to data published by the International Energy Agency in 2014. Gas demand, which is primarily used for electricity generation, is also expected to rise in coming years, buoyed by the Greek’s government’s efforts switch household heating from oil to gas generation.
State company DEPA, which sells gas to large consumers and to gas supply companies, would still have to honour its long-term gas agreements with Russian producer Gazprom and Algerian producer and LNG exporter Sonotrach – even if the country made the choice to exit.
DEPA has three long-term contracts for natural gas supply, which total around 4billion cubic metres (bcm)/year. The deals include a 2.8bcm/year deal with Gazprom’s export arm Gazexport which runs until 2016, a 0.5bcm/year deal with Sonatrach until 2019, and a 0.7bcm/year deal until 2021 with Turkish gas incumbent Botas.