Nov 19, 2024

Czechia Sees Surge in Cheaper Russian Gas Imports via Slovakia

Gas imports to the Czech Republic from Russia have soared in recent weeks, with over 95% of November’s supply coming from Slovakia, marking a significant shift in the country’s energy sourcing.

Until recently, most gas entered the Czech Republic through Germany, but the rising cost of German transport fees and the lower market price of Russian gas have made Slovakia the preferred route, according to Net4Gas transport statistics.

Russian Gas: The Cheapest Option for Czech Traders

Gas supplies from Russia to the Czech Republic sharply declined after the Russian invasion of Ukraine in February 2022, with imports dropping to nearly zero for much of that year. However, since last autumn, Russian gas has made a slow but steady comeback.

While earlier this year, 55% of gas imports arrived from Germany, this balance shifted dramatically in November, with gas from Slovakia accounting for more than 95% of the supply.

On a single day in November, over 151 gigawatt hours of gas passed through the Lanžhot border point with Slovakia, while only 5 gigawatt hours flowed through the Brandov entry point from Germany.

Analysts Explain the Trend

The price advantage of Russian gas is a key driver behind this shift. Germany imposes a transport fee of €2.50 per megawatt-hour, making its imports less competitive.

Net4Gas spokesman Vojtěch Meravý confirmed the shift in supply routes but noted that the company, as a transmission operator, does not trade gas or determine its origin. Experts, however, agree that most of the gas entering via Slovakia is likely Russian. “Although the exact origin cannot be verified, the probability of it being Russian is very high,” added Tyleček.

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Barbora Formánková of EFG also identified Slovakia as the main transit country for Russian gas. Meanwhile, economist Lukáš Kovanda from Trinity Bank highlighted that small volumes of Algerian gas, recently secured by ČEZ, also flow via Slovakia, though they represent a minority share.

Criticism Amid Growing Dependency

Despite the economic rationale, the increasing share of Russian gas in the Czech Republic’s supply mix has raised concerns. Following the start of the Ukraine war, the government and businesses emphasized reducing dependency on Russian energy. Yet, current market conditions—dominated by price competitiveness—are challenging those commitments.

“European reserves are sufficient for winter, but traders are prioritizing price over principles,” remarked Formánková. Moreover, Kovanda noted that most imported gas is consumed domestically, dispelling the notion that the Czech Republic serves only as a transit hub for Russian energy.

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