Czech energy group ČEZ to continue importing Algerian gas, extends supplier contract

State-controlled energy company ČEZ will continue importing gas from Algeria. It has extended its contract with local supplier Sonatrach. ČEZ has been taking gas from North Africa, which flows to Europe through an undersea pipeline, since October last year. As in the past year, deliveries are expected to cover more than two percent of annual Czech gas consumption, equivalent to the consumption of about 100.000 households. The ČEZ group informed the Czech News Agency (ČTK) of this today. The company did not disclose the financial terms of the contract.

According to ČEZ, cooperation with the Algerian company has proved successful over the past 12 months. The contract, the company said, helps broaden the geographic range of potential suppliers and provides another route for gas deliveries to the country in the event of a shortage on the domestic market.

"The more trading routes we have for deliveries of this essential commodity, the less we will be affected by any potential shortages elsewhere. At ČEZ, we continue to work on strengthening energy security overall. One example is the success of our experts this year, who for the first time handled the entire voyage of an LNG tanker from America to a terminal in the Netherlands," said Pavel Cyrani, vice-chairman of the ČEZ board of directors.

ČEZ currently takes gas from several foreign sources. Three years ago, Czechia secured capacity of three billion cubic metres of gas per year at the liquefied natural gas (LNG) terminal in Eemshaven, the Netherlands. In its three years of operation, the terminal has received 64 ships carrying gas destined for the Czech Republic, transporting the equivalent of 5.8 billion cubic metres of gas. ČEZ has also previously secured capacity at the onshore terminal currently under construction in Stade, Germany.

The Czech Republic currently draws gas mainly from the west, with gas from Norway and LNG from the terminal in the Netherlands flowing here primarily via Germany. As recently as the end of last year, Russian gas flowing through Slovakia accounted for the overwhelming majority of supplies to the Czech Republic.