Czechs Tap LNG as Europe Braces for Winter Without Russian Gas

By Bloomberg

Jul 19, 2022

image is BloomburgMedia_RF9NCEDWRGG301_19-07-2022_14-31-00_637937856000000000.jpg

A pressure gauge on pipework at the Avala gas storage facility, operated by Srbijagas JP, in Avala, near Belgrade, Serbia, on Wednesday, Jan. 5, 2022. European natural gas prices have risen to records in recent weeks as Russian supplies slowed in the middle of winter. Photographer: Oliver Bunic/Bloomberg

(Bloomberg) -- The Czech Republic is ramping up natural-gas reserves and has secured shipments from new suppliers to mitigate the mounting risk that Russia will not restart a key European pipeline before winter.

State-controlled utility CEZ AS will start importing 3 billion cubic meters of gas per year from a Dutch floating LNG terminal starting in September, Industry and Trade Minister Jozef Sikela told reporters in Prague on Tuesday. That will cover about a third of the country’s consumption and ensure that existing gas reserves will last until March even if Russian gas stops flowing, he said.

The landlocked nation is scrambling to curb its almost exclusive reliance on Russian gas as the European Union warned that Russia is unlikely to restart the Nord Stream pipeline on July 21 after maintenance. Over the past few months, the Czech Republic has been filling up its gas storage facilities, which are now about 77% full, according to Sikela.

“We are now feeling much more comfortable than we were at the beginning of the year,” he said. “We have a chance to get rid of our dependence on Russian gas.”

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By Krystof Chamonikolas