PRAGUE, Oct. 31 (Xinhua) -- Leading Czech energy group CEZ said Thursday it has reached a deal on gas supplies from Algeria's state-owned company Sonatrach.
Under the agreement, CEZ will buy nearly 2 percent of the Czech Republic's annual gas consumption from Algeria, corresponding to the needs of around 100,000 Czech households.
The gas will flow from Algeria via Tunisia, then through an underwater pipeline to Italy before finally reaching the Czech Republic. CEZ said the supplies had already started in October.
CEZ has been in talks with Algeria about gas supplies for two years and concluded the contract with the state's support. The energy giant said it will purchase gas from Algeria on its own account, without the financial involvement of the Czech State.
"We have taken yet another step towards enhancing our energy security. In addition to the supply of gas from German suppliers, from Norway, and from our LNG terminal in Eemshaven, we will now also bring gas from fields in Northern Africa," said CEZ CEO Daniel Benes.
The Czech Republic currently sources its gas from multiple foreign suppliers. Two years ago, it secured an annual gas capacity of 3 billion cubic meters from the Eemshaven liquefied natural gas (LNG) terminal in the Netherlands.
At the end of 2023, CEZ also secured a further LNG capacity of 2 billion cubic meters per year for 15 years, with an option to extend to 25 years, at an onshore terminal in Stade, Germany. Construction of the terminal began this spring, with its launch planned for the second half of 2027.
The Czech Republic consumed around 6.7 billion cubic meters of gas last year. ■
