Czech Republic buys gas for state reserves for first time: industry minister

The Czech Republic has bought natural gas for its state reserves for the first time, Minister of Industry and Trade Jozef Sikela said in a May 1 interview on state public service broadcaster Ceska Televizie.

Sikela said procurement of gas had taken place over the last three weeks of April following approval by the Cabinet for the move.

The minister refused to define volumes procured, saying only that the government had saved "around Koruna 4 billion [$170.7 million]" through April by delaying the purchases from March, when opposition party ANO had called for a state reserve to be created.

European net storage injections continued during late April, with gas tanks in the European Union hovering above 32% full, according to GIE AGSI. Benchmark TTF spot gas was assessed by Platts at Eur95.50/MWh at market close April 29, down Eur3.68/MWh on the day.

Sikela expected Czech gas storage facilities to be filled to around 50% by the end of May compared with 30% (around 1.0 Bcm) by the end of April.

The minister said he would present a proposal for a new "use it or lose it law" by the end of May ensuring reserved storage capacity was either used or re-assigned.

Sikela's ministry said April 29 it had taken crisis measures to ensure gas stores would be filled to at least 80% by the start of the next heating season.

Measures include state guarantees to make up the difference between current summer season gas purchases at existing high prices and those later in the winter season.

The Czech Republic consumes just over 8 Bcm of gas a year. It is around 87% reliant on Russian gas supplies according to 2021 figures from the national statistical office.