Norwegian state-owned energy giant Equinor has struck a new multi-year agreement with the Capital City of Prague’s gas and electricity company, Pražská plynárenská, to supply gas to the Czech Republic.
The ten-year deal, which has enabled gas supplies to the Czech Republic, will last until October 1, 2035. Pražská plynárenská will use the gas to supply households and businesses in Prague and other parts of the country with heat, electricity, and natural gas.
While the Norwegian player’s main gas markets have been in Northwest Europe and the UK, the company has expanded its reach over the past decade to include supplies to the Baltics and Poland and now sees a growing market potential among customers in Central and Southern Europe.
Anders Opedal , Equinor’s CEO, commented: “I am excited that we have made this agreement with Pražská plynárenská and that we now provide energy to homes and enterprises in the Czech Republic. This joins a string of long-term gas contracts we have signed across Europe in recent years, demonstrating the role gas plays for European energy security.”
Equinor’s supplies of pipeline gas to Europe are backed by the resources on the Norwegian Continental Shelf (NCS), which the firm describes as Europe’s most important energy province. While the Norwegian giant will deliver the gas at the Czech hub, information on volumes, terms, and conditions is confidential between the parties.
Ludvík Baleka , Chairman of the Board of Directors of Pražská plynárenská, remarked: “This step will significantly strengthen the stability and reliability of natural gas supplies for Pražská plynárenská’s customers, and its scope will cover, among other things, a significant part of the total consumption of households supplied with natural gas by our company.”
Pražská plynárenská is deemed to be a key domestic energy supplier in the Czech Republic and its subsidiary, Pražská plynárenská Distribuce, is the operator of the gas distribution system in Prague and its surrounding area, covering nearly 4,500 kilometers of gas pipelines.
Equinor is set on augmenting its oil and gas reserves in Norway, as illustrated by a recent drilling permit for two exploration wells in the Norwegian North Sea.