Czech state-owned Gas Storage offers new reverse storage product with gas already stored

State-owned operator of underground natural gas storage facilities Gas Storage CZ has offered gas traders a new reverse storage product. This is storage capacity that the company offers customers at auction together with the gas already stored in it. Interested parties have so far reserved capacity for 440 terawatt-hours (TWh) of gas in two December auctions, with demand exceeding supply by up to seven times. Gas Storage CZ announced this today.

„We are looking for new ways to help the natural gas market in the Czech Republic. In neighbouring countries, this product is commonly offered by underground storage operators. The first two auctions showed us that traders are interested in this option: they have the gas available immediately at the start of the contract period,“ said Gas Storage CZ Chairman of the Board Pavel Moučka.

The company is therefore preparing further auctions.

According to Moučka, the company sold more capacity this year than was customary in previous years, in order to improve security of supply.

Gas Storage CZ operates a total of six underground natural gas storage facilities in Dolní Dunajovice, Tvrdonice, Lobodice, Štramberk and Třanovice in Moravia, as well as an underground gas storage facility in Háje near Příbram. Their total capacity represents approximately one-third of the Czech Republic’s annual natural gas consumption.

„That is why we invest hundreds of millions of crowns every year in the reliability and safety of our storage facilities,“ Moučka said today.

Last year, state-owned company ČEPS bought Gas Storage from German company RWE for 360 million euros, or more than nine billion crowns. According to the government, the aim was to gain control over the handling of gas. Last year, the company more than tripled its operating profit year on year to 1.397 billion crowns. Revenue rose by almost half to CZK 2.473 billion. Net profit also increased compared with the year before last, to 2.6 billion crowns, positively affected by a one-off change in the book value of long-term assets.