Slovak company SPP signs contract for gas supplies from Azerbaijan

Bratislava, 13 November (CTK correspondent) – Slovakia’s largest natural gas seller, state-controlled SPP, has signed a short-term contract for natural gas supplies from Azerbaijani energy company SOCAR. The Slovak company informed CTK today and also warned that it would face higher costs if Russian gas supplies through Ukraine to the EU are halted.

SPP did not provide further details about the contract with SOCAR. In the past, the Slovak company has signed agreements to buy gas from several leading energy companies other than Russia as part of its efforts to diversify supplies.

„SPP has long supported the continuation of gas transit through Ukraine, as it is the most cost-effective solution for our customers. Given the high risk of gas supplies via the eastern route being halted, we are taking measures to guarantee safe gas supplies to our customers in any situation,“ said SPP CEO Vojtech Ferencz.

The current agreement between Moscow and Kyiv on the transit of Russian gas through Ukraine and onwards to Europe was signed for five years and expires at the end of this year. Ukraine, which has been defending itself against Russia’s military invasion for more than two years, has repeatedly made clear that it does not intend to extend the agreement.

If gas supplies through Ukraine are halted, SPP plans to import gas during the winter mainly via the pipeline from Germany through the Czech Republic. The company says it has purchased sufficient transmission capacity. SPP also identified TurkStream, which runs through Turkey to the Balkans, as an important route. According to SPP, Azerbaijani and Russian gas could reach Slovakia via this pipeline.

SPP said that if Russian gas supplies were halted, its costs would rise by at least 140 million euros (CZK 3.5 billion). This would be mainly due to transit fees for alternative gas supplies.