Czech gas consumption hit its lowest level since 1994 last year, down seven percent year on year

Czechs consumed the least gas last year since 1994. Natural gas consumption in Czechia fell seven percent year on year to 7.1 billion cubic metres. The main reasons were significantly lower demand for electricity from gas-fired power plants and continued declines in household and industrial consumption. Together with high storage levels, this also led to lower gas imports into Czechia. The figures come from an analysis by consultancy EGÚ Brno, which provided the analysis to ČTK.

Last year, 7.4 billion cubic metres of gas flowed into Czechia, while just under one billion cubic metres flowed out. According to the analysis, six times more gas passed through Czechia in 2021 than last year.

„The interruption of Czechia’s transit role, caused by the lack of Russian gas supplies to EU countries, significantly reduced gas flows through the Czech gas system as early as 2022. However, this only became fully apparent last year, when almost exclusively gas intended for domestic consumption entered the system,“ said Michal Kocůrek, managing consultant at EGÚ Brno.

Most of the gas supplied to Czechia last year came via Germany from Norway and from liquefied natural gas (LNG) terminals on the North Sea coast, namely in Belgium, the Netherlands and Germany. From October, Russian gas purchased on the Slovak or Austrian market also began flowing into Czechia, ultimately accounting for about seven percent of total annual domestic consumption.

Gas consumption also fell across the EU, by around five percent year on year. According to Kocůrek, the most significant decline was in electricity generation. The reduced consumption of gas also substantially lowered the EU’s need for gas imports. Last year’s mild winter and high storage levels at its end made it possible to import 16 percent less gas than in 2022, or approximately 60 billion cubic metres.

According to EGÚ Brno, the lower need for imports had a positive effect on gas prices in Europe. „The average gas price for delivery the following month at Europe’s main trading hub, TTF, was just under 41 euros (about 1006 Kč) per MWh in 2023, approximately 69 percent lower than a year earlier. The decline in the European market reflected the availability of imported spot LNG, which reached ports in north-western Europe at an average price of 38 euros (933 Kč) per MWh,“ Kocůrek said.

According to the analysis, LNG supplies were Europe’s main source of gas last year, although the total volume of imported LNG edged down year on year because of low imports into Britain. LNG’s share of all supplies nevertheless rose to 43 percent. Most came from the US, followed by Africa, the Middle East and then Russia. According to the analysis, Russian LNG supplies remained at roughly the same level last year as a year earlier, totalling 21 billion cubic metres of gas.

Norwegian gas is Europe’s second most important source. However, imports fell 15 percent year on year to 106 billion cubic metres of gas because of an increased number of maintenance shutdowns.

Pipeline gas imports from Russia fell much more sharply, from 63 billion cubic metres in 2022 to 26 billion cubic metres in 2023. This was 80 percent less than in 2021. The share of all Russian gas in imports to EU countries and Britain consequently fell to 15 percent. The only EU countries still directly importing Russian pipeline gas are those with valid long-term contracts: Austria, Slovakia and Hungary. Russian gas from these countries also flowed into Czechia towards the end of the year.