Czech energy company CEZ secures full LNG tanker transport across the ocean to the Netherlands for the first time

Energy company CEZ has for the first time arranged the entire transport of a liquefied natural gas (LNG) tanker across the ocean from the US to a terminal in the Netherlands. Until now, the company ordered the gas and took delivery of the cargo only at the terminal. This time, it was responsible for the entire transport process. The partly state-owned company CEZ, which has leased part of the Eemshaven terminal since 2022, announced this today. So far, 51 ships carrying gas for the Czech Republic have arrived there.

CEZ was now responsible for the entire navigation and logistics chain, including negotiations with the liquefaction terminal in the United States, chartering the ship, communicating with terminals, customs and tax matters, insurance, loading in the US, the voyage across the Atlantic Ocean and the ship’s return. A 300-metre-long tanker carrying 170.000 cubic metres of LNG arrived in the Netherlands in the middle of last week.

Eemshaven was the first LNG terminal to start operating in Europe since the beginning of the war in Ukraine, with the first ship arriving there in September 2022. The floating facility can process eight billion cubic metres of gas a year, of which up to three billion can be supplied to the Czech Republic. In addition to CEZ, other well-known energy companies have reserved capacity at the terminal: British-Dutch Shell and France’s Engie.

"So far, 51 ships carrying 4.6 billion cubic metres of gas intended for the Czech Republic have arrived at the terminal. For the first time, we took charge of a ship off the coast of Texas and managed its voyage across the entire Atlantic Ocean," said CEZ Vice-Chairman of the Board Pavel Cyrani.

The company did not disclose the costs associated with the transport.

According to CEZ, managing the entire process strengthens the company’s know-how in commodity trading as well as the Czech Republic’s energy security. "This is a very valuable experience for us, taking us a significant step further in the LNG trading process. Control over transport allows us to be more flexible and, for example, redirect a ship in the future to where demand for gas is highest. Control over the ship and its cargo also increases the security of gas supplies," said CEZ LNG Manager David Viduna.

CEZ has leased capacity at Eemshaven until 2027. Starting in the same year, it has also secured around two billion cubic metres of gas a year—more than a quarter of current domestic consumption—at the under-construction onshore terminal in Stade, Germany, near Hamburg. The company has signed a 15-year contract with the terminal’s operator, with an option to extend. CEZ has also said it will look at further opportunities to secure capacity at other LNG terminals.