Headline: Czech Republic‘s Gas Dependency: A Closer Look
Subheading: Debunking the Myth of a Post-Russia Invasion Breakthrough
Czech Republic’s gas dependency on Russia remains unchanged. Currently, over 95% of the gas supplied to the Czech Republic comes from the east, with most of it originating from Russia. (Image: Depositphotos.com)
December 2024 marks a significant milestone for the Czech Republic’s gas supply, with over 95% of the total imported gas coming from the east, primarily Russia, according to data from the state-owned company NET4GAS. This situation is not much different from five or even ten years ago, debunking the popular myth that the country rapidly reduced its dependence on Russian gas following the invasion of Ukraine in 2022.
The Czech Republic does not have a direct contract with Russia for gas supply. Instead, Russian gas reaches the Czech Republic through intermediaries, such as Slovak or Hungarian companies that have direct contracts with Gazprom, Russia’s state-owned energy giant. Regardless of the intermediary, Czech gas consumers ultimately pay Russia for the gas they use.
A look back at the past decade reveals a consistent dependence on Russian gas. Before 2019, the majority of Russian gas supplied to the Czech Republic transit through Germany. Today, it arrives primarily from the east, via Slovakia. Yet, regardless of the route, the source of the gas remains predominantly Russian.
Even a decade ago, in 2014, the situation was not markedly different. While the Czech Republic had a direct contract for the import of Norwegian gas, the reality was that much of this “Norwegian” gas was originally sourced from Russia. The deciding factor was the commercial interest of German intermediaries, who had long-term contracts or found Russian gas to be the most cost-effective option.
The construction of LNG terminals on German soil could have supplied the Czech Republic with gas from various global sources over the past decade. However, Germany prioritized Russian gas, leading to the construction of the Nord Stream and Nord Stream 2 pipelines, supported by other Western European countries. In this context, the Czech Republic’s reliance on Russian gas continued unabated.
Today, despite the destruction of the Nord Stream pipelines and the subsequent rapid development of LNG terminals in Germany, the Czech Republic’s situation has not significantly changed. Over 95% of the gas the country receives still comes from Russia. The newly constructed Czech-Slovak interconnector STORK II, which could have reduced dependency on German gas transmission networks, has been delayed indefinitely.
The most significant shift in the Czech Republic’s gas supply history occurred in the 1990s and early 2000s, during which time the country shed its near-total dependence on Soviet and later Russian gas. Since then, the Czech Republic has made modest strides in diversifying its gas supply, but it remains heavily reliant on Russian gas, a situation that has persisted for over a decade.
To claim that the Czech Republic’s gas dependency on Russia has dramatically decreased in the two or three years following the Russian invasion of Ukraine is, to a large extent, a fairy tale. The only significant step taken by the Czech Republic since the invasion is a multi-year lease of LNG capacity at the Dutch Gate terminal, which could cover around one-third of the Czech Republic’s annual gas consumption.
The remainder, two-thirds of the Czech Republic’s gas consumption, continues to be supplied through the traditional Russian-Slovak route…
About the Author:
The author is the Chief Economist at Trinity Bank (Editorially adapted)
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