Analysts: Net4Gas acquisition signals Czech state will rely on gas in energy sector

The acquisition of Net4Gas, which operates an extensive network of gas pipelines and transfer stations in the Czech Republic, signals that the state intends to rely on gas in the energy sector in the future. This was said by analysts contacted by the Czech News Agency (ČTK). In their view, the acquisition will increase the country’s energy stability, but they also warn about the company’s financial situation, which means the state is unlikely to recoup the purchase price.

On Wednesday, the government tasked state-owned ČEPS with buying NET4GAS Holdings, which operates an extensive network of gas pipelines and transfer stations in the Czech Republic. The purchase agreement is expected to be signed today. The government plans to disclose the purchase price after the agreement is signed.

According to Michal Kocůrek, managing partner at EGÚ Brno, the acquisition of Net4Gas is above all a signal to the Czech economy that the state expects gas to remain part of the energy mix in the future. He said industrial companies can therefore begin making investments that require long-term natural gas supplies, since the state’s ownership stake in the sector makes it possible to align long-term strategies for the gas, heating and electricity sectors much more securely with the development of energy infrastructure, in coordination with all key partners. „In the case of Net4Gas, there is a high likelihood that any other potential buyer would pose a greater risk to ensuring stable gas supplies,“ Kocůrek noted.