NET4GAS, s.r.o., a subsidiary of NET4GAS Holdings, operates around 2,485.5 miles (4,000 kilometers) of gas pipelines, three border transfer stations, five compression stations, and a hundred transfer stations at the interface with national gas distribution. Another subsidiary, BRAWA, a.s., owns the Gazela gas pipeline, which connects Germany and runs through Czech territory from the North Bohemian crossing of Brandov to Bavaria.
The acquisition received regulatory approval from the Office for the Protection of Economic Competition and the Directorate General for Economic Competition (DG COMP) of the European Commission, ČEPS said in a recent news release.
The purchase price consists of two parts, with the first amount of $140 million (CZK 3 billion) paid after the signing of the transfer contract.
"ČEPS will pay the second part in two installments, up to a maximum of CZK 2 billion [$90 million], if the economic performance parameters of NET4GAS are met”, ČEPS Chairman Martin Durčák said. “The transaction will be paid for mainly from ČEPS, a.s.'s own resources, in combination with external resources, depending on the current state of the company's operational cash flow”.
"NET4GAS is essential for the transport of gas through our territory and the further development of the gas system”, Czech Minister of Industry and Trade Jozef Sikela said. “Considering that natural gas will play an important role in the energy decarbonization process in the coming years, it is necessary to ensure the company's stable future development".
Síkela added that the investment follows the purchase of gas storage tanks that provide up to 45 percent of the country's winter consumption of gas or for the acquisition of shares in liquefied natural gas (LNG) terminals in the Netherlands and Germany.
"As part of the shift away from coal and the development of renewable energy sources, gas will play an important role as a stable and reliable source for the production of electricity and heat. In the coming years, we expect an increase in its consumption by 25 to 50 percent, which is why the state's investment in NET4GAS is a very important step towards strengthening energy security", Sikela explained.
According to the release, the NET4GAS system before 2022 transported around 1.59 trillion cubic feet (45 billion cubic meters) of natural gas per year, of which approximately 282.5 billion cubic feet (8 billion cubic meters) was for domestic consumption. In 2022, due to the Russia-Ukraine conflict, the volume of transported gas fell to around 1.09 trillion cubic feet (31 billion cubic meters), and in 2023, the average monthly volume of transportation fell by another approximately 70 percent.
"We see great potential for another future increase in the volume of gas transported through Czech territory”, Sikela said. “Russia still supplies the states to the east of us with large volumes of gas supplies via Ukraine; however, the contract for transporting this gas through the territory of Ukraine will expire next year and its renewal is not at all certain. The Czech Republic would then again play a big role in the transport of gas to the countries of Eastern Europe”.
Síkela noted that another reason for a possible increase in gas transport via the Czech Republic could be future deliveries of hydrogen from Ukraine to the Czech Republic or Germany.
"NET4GAS gas pipelines could become part of the so-called Central European Hydrogen Corridor, which could be used to transport up to circa 15 billion cubic meters of hydrogen per year in the future", Síkela added.
