Czech ČEZ: No LNG shortage, but prices may rise in a prolonged conflict

There is no risk of a shortage of liquefied natural gas (LNG) due to the conflict in the Middle East, with deliveries to terminals continuing as planned. ČEZ deputy chairman of the board Pavel Cyrani told journalists today. According to him, the current situation will therefore not yet affect prices for customers. However, he acknowledged that a prolonged conflict could lead to higher gas prices.

"We have contracted LNG slots. Deliveries are arriving as normal," Cyrani said.

He recalled that Czechia is currently not dependent on gas from the Middle East, with most LNG for Czechia coming from the United States. According to Cyrani, this means that the situation from four years ago will not be repeated, when, following the start of Russia's aggression against Ukraine, there was a threat of disruptions to gas supplies from Russia, on which the Czech Republic was dependent at the time.

However, the conflict may affect gas prices. According to Cyrani, it has so far been reflected in short-term markets, particularly in April contracts. Over a longer time horizon, the conflict's impact on market prices remains minimal, he said. However, this could change if the current situation in the Middle East were to continue for several months.