Reliance on natural gas leaves Greece vulnerable to price swings

Recent developments in the Middle East have led to a renewed phase of uncertainty and have pushed liquefied natural gas (LNG) prices up.

September futures contracts on the Netherlands-based TTF exchange rose 16% last week, to levels not seen since December 2023.

Despite now getting a majority of its power generated from renewable sources, Greece still relies heavily on natural gas, which accounts for more than a third of power generation. The government faces the prospect of subsidizing electricity bills longer than it intended. And any cutoff of Israeli natural gas exports to Egypt could send LNG prices soaring.