Middle East unrest not disrupting Czech LNG supplies - CEZ

Middle East unrest not disrupting Czech LNG supplies - CEZ

Prague, March 12 (CTK) - There is no threat of LNG shortages due to the fighting in the Middle East, and supplies to terminals are continuing, Czech semi-state energy group CEZ's board deputy chairman Pavel Cyrani told journalists today.

According to him, the current situation will not affect customer prices for the time being. However, a prolonged conflict could lead to an increase in gas prices, he added.

"We have contracted slots with LNG. Deliveries are running as standard," Cyrani said.

He recalled that the Czech Republic is not currently dependent on gas from the Middle East, with most of the LNG for the Czech Republic coming from the United States. According to Cyrani, this will not be a repeat of the situation four years ago, when, after the start of the Russian aggression in Ukraine, there was a threat of interruption of gas supplies from Russia, on which the Czech Republic was dependent at the time.

However, the conflict may have an impact on gas prices. According to Cyrani, it is currently affecting short-term markets, especially April contracts. In the longer term, the conflict's impact on market prices is minimal for now. However, this may change if the current situation in the Middle East drags on for several months, Cyrani said.

The conflict will not affect customer prices for the time being, according to Cyrani. "We have already purchased all our gas for this year, and we have already purchased gas supplies for next year in advance, so we can now afford to slow down further purchases or stop them for a few weeks," said Cyrani.

However, if the problems persist for several months, it will be necessary to address the situation in customer offers, Cyrani added.

LNG supplies from the United States are one of the topics of Industry Minister Karel Havlicek's current visit to the USA. According to Havlicek, the aim is to lease capacity in the USA, which CEZ would then import to its leased capacities in Europe.

CEZ currently leases LNG capacity at the terminal in Eemshaven, Netherlands. The existing contract secures up to one-third of the Czech Republic's annual gas consumption. The contract expires in September next year. CEZ has recently submitted a bid to extend its capacity.

In addition, CEZ is to have capacity secured from next year at a terminal under construction in Germany, but according to the government, its construction is falling behind schedule.

tam/er