Imports of Russian gas into Czechia surge, analysts say price is the reason

Imports of gas from Russia to Czechia have risen significantly in recent weeks. While for most of this year the majority of gas entering the Czech Republic came from Germany, in November more than 95 percent of supplies has been gas arriving from Slovakia. Experts say that gas flowing in this direction is primarily Russian. This is according to transport statistics from Net4Gas, which CTK has seen.

Analysts say the main reason for the current trend is the lower market price of Russian gas, while transport fees make imports via Germany more expensive. CTK is seeking comment from the Ministry of Industry and Trade.

According to statistics from the Energy Regulatory Office (ERÚ), gas supplies from Russia to Czechia began to fall significantly after Russia launched its invasion of Ukraine and were close to zero for most of last year. However, data shows that the share of Russian gas began to rise gradually again last autumn. Its share was still a minority, though.

According to Net4Gas statistics, this year's share of transport from individual sources changes quite regularly from day to day. Overall, however, for most of this year the split has been 55 percent of gas supplies from Germany and about 45 percent from Slovakia. In November, however, the supply figures are completely different. Gas arriving from Slovakia accounts for more than 95 percent of supplies.

On Monday, for example, more than 151 gigawatt-hours of gas flowed through Lanžhot, the main interconnection point on the border with Slovakia, while only just over five gigawatt-hours flowed through the Brandov interconnection point in the northwest of the country. „In recent weeks, we have seen an increase in the share of gas supplies via Slovakia, while supplies via Germany have fallen,“ Net4Gas spokesperson Vojtěch Meravý told CTK.

He pointed out that, as the operator of the transmission system, the company is not involved in trading gas and therefore has no influence over where the gas delivered to the country comes from or who supplies it. It therefore cannot confirm that gas from Slovakia is exclusively Russian. In the past, however, Czech authorities have repeatedly acknowledged that most of the gas flowing in from Slovakia is Russian. Experts confirm this, too.

„Although the origin of the gas cannot be determined unequivocally, it is reasonable to assume with a high degree of certainty that it is Russian gas,“ said Jiří Tyleček, an analyst at XTB.

Barbora Formánková of EFG also identified Slovakia as the main transit country for Russian gas.

Trinity Bank economist Lukáš Kovanda noted that since October, gas from Algeria has also been able to flow through Lanžhot. ČEZ recently secured supplies of this gas, but its share of supplies via Slovakia will be a clear minority. Kovanda also pointed out that most of the gas imported into the Czech Republic stays in the country, so it cannot be claimed that gas from the east is merely passing through Czechia.

Analysts say the main reason for such a sharp increase in gas supplies is its price advantage. „Russian gas is cheaper than alternative sources. One of the main reasons is Germany's transport fees. These currently stand at 2.5 euros per megawatt-hour. International gas trading is not about ideals. Hard business is what matters,“ Tyleček said. He pointed out that Russian gas is not subject to any sanctions, so traders' actions are legal. Formánková said that while European countries have sufficient gas reserves for the winter, price is currently winning out in the market.