Czech ČEZ enters tender to extend LNG capacity in Eemshaven for coming years

Energy company ČEZ has entered a tender to extend liquefied natural gas (LNG) capacity at the terminal in Eemshaven, the Netherlands, for further years. The company’s current contract expires in September next year. ČEZ spokesman Roman Gazdík told CTK in response to an inquiry. He declined to comment on the details of the bid. The existing agreement secures for Czechia up to one-third of its annual domestic gas consumption.

ČEZ submitted its bid after being authorised by the government last week. Industry and Trade Minister Karel Havlíček (ANO) said at the time that Czechia could find itself without secured LNG supplies after the contract ends. ČEZ has also secured capacity at a terminal in Germany from 2027, but its construction is running behind schedule, according to Havlíček.

"ČEZ’s capacity lease in Eemshaven ends in September 2027. A tender is currently under way for capacity for the following years, and ČEZ has entered it," Gazdík said today.

He did not specify the volume of capacity sought at the terminal, the potential length of the new contract or when the tender results might be announced.

Eemshaven was the first LNG terminal launched in Europe since the start of the war in Ukraine, with the first ship arriving in September 2022. The facility can process eight billion cubic metres of gas a year, of which up to three billion cubic metres can be directed to Czechia. Alongside ČEZ, other well-known energy companies, Anglo-Dutch Shell and France’s Engie, also booked capacity at the terminal at the time.

Since beginning operations through the end of last year, the terminal handled a total of 72 ships carrying LNG intended for Czechia. The ships delivered 6.44 billion cubic metres of gas, equivalent to annual domestic gas consumption. According to ČEZ, the deliveries contained no gas from Russia, with most arriving on ships from the US.

In cooperation with ČEZ, Czechia also secured capacity in 2023 at an onshore LNG terminal being built in Germany, from which it was due to start drawing gas as early as next year. However, according to Havlíček, construction of the terminal is running behind schedule. "This could mean that in 2028 and perhaps also in 2029, we would not have capacity from Stade, while the agreement in Eemshaven would already have expired. In view of this exceptional situation, we authorised ČEZ to enter the auction for additional capacity and bridge this period," Havlíček said last week.

Under the original plans, Czechia was to have two billion cubic metres of gas available annually at the Stade terminal near Hamburg from 2027 for at least 15 years, more than a quarter of current domestic consumption.