The Czech company suspended the gas storage contract with Gazprom

The Czech company suspended the gas storage contract with Gazprom

The Czech company Moravia Gas Storage (MGS), which operates the underground gas storage facility in Damboržice, has suspended the contract with the Russian gas giant Gazprom for its lease until the end of March 2024.

As European Truth reports, Pavel Marek, a member of the board of directors of MGS, told iROZHLAS about this.

The company made the decision to suspend the contract in response to the latest, tenth package of sanctions against Russia approved by the European Union at the end of February.

“According to the sanctions package, MGS cannot provide gas storage services to Gazprom Export, therefore the performance of the contract was suspended for the duration of the sanctions. Subsequently, all storage capacity was sold to traders authorized to work on the country’s energy market for the entire season from April 2023 year until the end of March 2024,” said Marek.

The gas storage facility in Damboržice is a joint venture between the Czech company Moravian Oil Mines and the Russian gas giant Gazprom Export. Since 2015, Gazprom has been leasing the majority of storage capacity. For a 15-year lease, he had to pay Moravian Oil Miles 7.5 billion crowns (almost 312 million euros).

The Damboržice storage facility accounts for about 12% of the total storage capacity in the Czech Republic.

The Russians used minimal capacity at the end of the season, as in other EU countries. In addition, after the invasion of Ukraine, Gazprom began to cut regular gas supplies, so there was a risk that there would not be enough gas for heating with high winter consumption.

It will be recalled that earlier the Minister of Industry and Trade of the Czech Republic, Josef Sikela, stated that the problem of importing fossil fuels from Russia to the Czech Republic may be finally resolved in 2024.

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