Havlíček: Gas must be bought prudently; Czechia will have enough for winter

Gas storage facilities in Czechia are currently 74 percent full. Industry and Trade Minister Karel Havlíček (ANO) said this on the Partie programme on CNN Prima News. Current stocks are therefore around a fifth lower than a year ago. According to Havlíček, gas stocks now need to be purchased prudently given current market prices, but there is no risk of a gas shortage for the winter.

According to analysts, the slower replenishment of gas stocks is a result of rising gas prices on the exchange. At the start of this week, the wholesale price of gas for the European market exceeded 84 euros (around CZK 2040) per megawatt-hour (MWh), reaching its highest level in more than three years. According to analysts, the market is also reacting to a further escalation of the conflict in the Middle East and lower gas stocks in Europe.

"There is currently no problem with the volume of gas in Europe; the problem is the price. Those buying more prudently now are buying at lower prices. The winter contract is currently lower than spot prices," Havlíček said.

He said that if gas were purchased for storage at any price, without it being necessary, consumers would ultimately pay unnecessarily more.

Despite lower stocks year on year, Czechia is still meeting interim European targets. These require storage facilities to be at least 60 percent full by 1 September. In recent weeks, the Ministry of Industry and Trade has also indicated that the main European target of 80 percent fullness for the period from 1 October to 1 December should be met.

Stocks in Czechia are currently above the EU average. According to data from the Energy Regulatory Office (ERÚ), European storage facilities are currently just under 67 percent full.

According to analysts, the current rise in gas prices on the exchange will gradually increase household supply prices in the coming months as well. However, this will not be a blanket price rise; prices will increase mainly for new fixed-price contracts. According to analysts, the coming winter and further geopolitical developments will be crucial to longer-term price trends.

The main operator of natural gas storage facilities in Czechia is state-owned company Gas Storage CZ. It operates six underground storage facilities, namely in Dolní Dunajovice, Tvrdonice, Lobodice, Štramberk and Třanovice in Moravia, as well as in Háje near Příbram. Their total operational capacity is more than 2.7 billion cubic metres of natural gas, equivalent to around a third of annual domestic consumption. Additional stocks are also managed by private traders.