- Table of Contents
The Czech Republic is situated in Central Europe and is bordered to the north by Poland; to the east by Slovakia, to the south by Austria and to the west by Germany. The Czech Republic has a total surface of 78,866 square kilometres (30,450 sq mi) and is inhabited by approximately 10.6 million people (2011 census). The Czech Republic is the first former member of Comecon (Eastern Bloc’s reply to the formation of the OECD in the West) to reach the status of developed country according to the World Bank.[1]
The Czech Republic has a natural gas supply per capita of 0.728 in 2010 (estimate). With a very small rate of domestic production, the Czech Republic imports virtually all of its gas volumes from Russia and Norway. The Czech Republic has built a storage capacity of 2,501 mcm, which can cover about a quarter of common yearly Czech consumption of natural gas (an estimated total of 9,280 mcm in 2010). [2]
| Basic Gas Facts | 2006 | 2007 | 2008 | 2009 | 2010e |
|---|---|---|---|---|---|
| Gas reserves (bcm) | .. | 4 | 4 | 3 | 3 |
| Gas production (mcm) | 194 | 201 | 199 | 178 | 203 |
| Gas consumption (mcm) | 9292 | 8651 | 8687 | 8184 | 9280 |
| Gas imports (mcm) | 9804 | 8628 | 9573 | 9683 | 8510 |
| imports pipeline (mcm) | 9804 | 8628 | 9573 | 9683 | 8510 |
| imports LNG (mcm) | - | - | - | - | - |
| Import dependency (%)* | 104.175% | 95.08% | 99.06% | 104.74% | 89.98% |
| Gas exports (mcm) | 124 | 402 | 968 | 1111 | 159 |
| Natural gas supply per capita (toe) | 0.737 | 0.696 | 0.683 | 0.64 | 0.728 |
| Technically recoverable shale gas resources (bcm) | .. | .. | .. | .. | .. |
| Coal Bed Methane reserves (bcm)** | .. | .. | .. | .. | .. |
| c = confidential; - = nill; ..= not available * Imports dependency of natural gas = (imports - exports) / consumption **Proven & Probable (2P); U.S. Environmental Protection Agency, Coalbed Methane Outreach Program Source: Natural Gas Information © OECD/IEA, 2011 | |||||
| Basic Energy Facts | 2006 | 2007 | 2008 | 2009 | 2010e |
|---|---|---|---|---|---|
| Total Energy Consumption (mtoe) | 45.85 | 45.78 | 44.63 | 41.99 | 42.33 |
| CO2 Emissions, energy-related (Mt) | .. | 122.14 | 116.83 | 109.84 | .. |
| CO2 intensity, energy-related (tCO2/toe) | 2.8 | 2.67 | 2.62 | 2.62 | .. |
| Energy consumption per capita (toe/cap) | 3.909375 | 4.02469758065 | 3.98094758065 | .. | .. |
| CO2 per capita, energy-related (tCO2/cap) | .. | 10.45 | 11.2 | 11.83 | .. |
| c = confidential; - = nill; ..= not available Sources: Natural Gas Information © OECD/IEA, 2011 & EIA International Energy Statistics | |||||
This section explores total primary energy consumption (TPEC) and gas demand by sector for Czech Republic.
In 2010, Czech Republic’s TPEC amounted to an estimated 42.33 mtoe, which is only slightly more than in 2009 (41.98 mtoe). In 2010, oil accounted for 8.63 mtoe, while coal and gas accounted for 17.12 mtoe and 7.63 mtoe respectively. Other sectors accounted for 8.95 mtoe.
In 2009 Czech Republic consumed a total of 8,184 mcm of natural gas, about 6% less as compared to the previous year. In 2008 Czech Republic consumed a total of 8,687 mcm of natural gas which is almost equal to the consumption in 2007. Of its consumption in 2009, 1,173 mcm were used for transformation and 2,345 for industry (excluding the energy industry itself, which used 135 mcm), while 4,165 mcm was consumed by other sectors.*
Transformation includes the generation of electricity, while the demand from the ‘Industry’ refers to gas used for such things like the chemical-, iron and steel- and machinery industry. The demand from the ‘Energy Sector’ refers to gas used for the extraction of coal, oil, and gas and gas used in refineries, coke ovens and gas works.[1]
This section deals with gas reserves and gas imports.
There are very little indigenous gas resources in the Czech Republic: only 3-4 bcm. The reserves-to-production ratio* for the Czech Republic at the end of 2010 is 14.8 years (3,000 mcm/203 mcm), down from 14.2 years at the end of 2008.[1]
*Reserves-to-production (R/P) ratio – If the reserves remaining at the end of any year are divided by the production in that year, the result is the length of time that those remaining reserves would last if production were to continue at that rate.
| By country of origin (in mcm) | 2006 | 2007 | 2008 | 2009 | 2010e | %Total 2010 |
|---|---|---|---|---|---|---|
| Russia | 7284 | 6800 | 7500 | 6683 | 7460 | 88% |
| Norway | 2520 | 1828 | 2073 | 3000 | 1050 | 12% |
| Total | 9804 | 8628 | 9573 | 9683 | 8510 | 100% |
| %Total Consumption | 105.51% | 99.73% | 110.20% | 118.32% | 91.70% | - |
| c = confidential; - = nill; ..= not available Source: Natural Gas Information © OECD/IEA, 2011 | ||||||
| By transport type (in mcm) | 2006 | 2007 | 2008 | 2009 | 2010e | %Total 2010 |
|---|---|---|---|---|---|---|
| Pipeline imports | 9804 | 8628 | 9573 | 9683 | 8510 | 100% |
| LNG imports | - | - | - | - | - | - |
| Total | 9804 | 8628 | 9573 | 9683 | 8510 | 100% |
| %Total Consumption | 105.51% | 99.73% | 110.20% | 118.32% | 91.70% | - |
| c = confidential; - = nill; ..= not available Source: Natural Gas Information © OECD/IEA, 2011 | ||||||
In 2010 in Czech Republic gas imports account for almost 92% of the total volumes of consumed gas. All of Czech Republic´s gas imports are being accomplished via pipeline. Since Czech Republic is a landlocked country, it has no option to import LNG. The gas pipeline imports originate from Russia and Norway. The share of Norwegian gas in Czech Republic gas imports decreased significantly from 31% to only 12% in 2009. In 2010, the share of Russian gas contracted up to 88%, compared to 69% in 2009. [1]
Czech Republic’s only significant gas export goes to Germany, for which it forms a transit country. Some transit to France also takes place.[1]
| By country of origin (in mcm) | 2006 | 2007 | 2008 | 2009 | 2010e |
|---|---|---|---|---|---|
| Germany | 39 | 316 | 945 | 1012 | .. |
| Other | 85 | 86 | 23 | 99 | 159 |
| Total | 124 | 402 | 968 | 1111 | 159 |
| %Total Production | 0.29% | 0.92% | 2.16% | 2.37% | 0.32% |
| c = confidential; - = nill; ..= not available, e = estimated Source: Natural Gas Information © OECD/IEA, 2011 | |||||
This section deals with the gas grid, LNG terminals and storage facilities in Czech Republic.
Pipeline
NET4GAS is the sole gas transmission system operator in Czech Republic and operates 3,643 km of transmission pipelines (total compressor power: 297 MW). The entry points into the transit system are border transfer stations at Lanzhot (at the border with Slovakia), while the exit points from the transit system are the border transfer stations at Hora Svaté Kateriny/Olbernhau, Hora Svaté Kateriny/Sayda and Waidhaus (at the border with Germany). There are 78 connections between the transmission system and distribution system.[1]
Gas Infrastructure Projects
At the moment, there seems to be one infrastructure project planned in the Czech Republic (see table).
| Project | Type | Sponsors | Total Length (km) | Diameter (mm) | Technical Cap. Pipes** | Power of CS(s) (MW)*** | Sources | Expected Benefits |
|---|---|---|---|---|---|---|---|---|
| NET4GAS | Pipeline (incl. CSs*) | Net4Gas | 174.2 | 500-1400 | .. | .. | .. | SoS****, Market Integration, Source Diversification |
| *compressor station **bcm/year ***absorbed power ****Security of Supply Source: ENTSOG Ten Year Network Development Plan 2011-2020 | ||||||||
After the realization of North Stream a large redirection of gas flow through Central Europe is expected. Therefore more capacity is needed in the direction Olbernhau – Waidhaus and thus is the GAZELLE pipeline under preparation works. It comprises about 175 km of pipeline. Other projects considered by NET4GAS are the strengthening of reverse flows in the West – East direction and the possible connection to Poland (STORK) and underground gas storage Tvrdonice.
Czech Republic is a landlocked country which makes it impossible to receive any LNG imports.
In 2011 there are 8 operational storage facilities in Czech Republic with a combined technical storage capacity of 3,077 mcm. There are 5 depleted gas fields, 1 granite cavity and 1 aquifer with an aggregated 54 mcm/day withdrawal capacity and a 39.5 mcm/day injection capacity. Apart from RWE Transgas, which owns the majority of the storage facilities, Moravské Naftové Doly (MND) has one facility. [1]
| Nr. | Facility name | Operator | Storage Capacity (mcm) | Withdraw (mcm/day) | Injection (mcm/day)* | TPA** | Type |
|---|---|---|---|---|---|---|---|
| 1 | Dolní Dunajovice | RWE Gas Storage | 900 | 12 | 29.6 | N | Depleted Gas Field |
| 2 | Hajé | RWE Gas Storage | 64 | 6 | - | N | Granite Cavern |
| 3 | Lobodice | RWE Gas Storage | 177 | 3 | - | N | Aquifer |
| 4 | Stramberk | RWE Gas Storage | 480 | 7 | - | N | Depleted Gas Field |
| 5 | Tranovice | RWE Gas Storage | 240 | 4 | - | N | Depleted Gas Field |
| 6 | Tvrdonice | RWE Gas Storage | 460 | 7 | - | N | Depleted Gas field |
| 7 | Uhrice | MND Gas Storage | 180 | 6 | 2.9 | .. | Depleted Gas field |
| 8 | Dolní Bonajovice | SPP Bohemia | 576 | 9 | 7 | .. | - |
| Total | - | - | 3077 | 54 | 39.5 | - | - |
| * 29.6 is the aggregated value for the storage facilities from this operator ** Third Party Access: Regulated ( R) - Negotiated (N) - Hybrid (H) - Not Applicable (X) Source: Gas Infrastructure Europe: GSE Storage Map 2011 & Natural Gas Information © OECD/IEA, 2011 | |||||||
In addition to the existing storage capacity there are several storage facilities still planned in Czech Republic in August 2011. These planned facilities have a combined technical storage capacity of 620 mcm.
| Nr. | Facility name | Operator | Storage Capacity (mcm) | Withdraw (mcm/day) | Injection (mcm/day) | TPA* | Type |
|---|---|---|---|---|---|---|---|
| 1 | Several storage facilities | .. | 335 | .. | .. | .. | .. |
| Total | - | - | 335 | .. | .. | - | - |
| *TPA: Regulated ( R) - Negotiated (N) - Hybrid (H) - Not Applicable (X) Source: Gas Infrastructure Europe: GSE Storage Map 2011 | |||||||
- 1. Natural Gas Information © OECD/IEA, 2011
- 2. Gas Infrastructure Europe: GSE Storage Map August 2011
This section deals with the gas market regulation in upstream, in the transmission grid and downstream.
The upstream sector in Czech Republic is fully privatized. RWE Transgas (fully owned by RWE) has signed long term contracts with Gazexport and a consortium of Norwegian companies to import gas. With about 80-90% from Russia and 10-20% from Norway, RWE Transgas is one of the main importers of gas. Other market players are Wingas (owned by Wintershall and Gazprom), Vernex (majority owner: shareholders of Gazprom subsidiaries) and Moravské Naftové Doly (MND) (majority owner: SPP Bohemia). The Balancing Centre is jointly set-up by the 12 most important Czech businesses. The Centre is responsible for the underground gas storage facilities, line pack, the capacities and performance of the transmission and distribution systems and for monitoring of planning, production, supplies and consumption. In the Czech Republic bilateral contracts are used for all the trade on the wholesale market. [1]
The networks in Czech Republic are fully privatized. Net4Gas holds an exclusive license for gas transmission and transit operation (on regulated TPA terms set/approved by the Energy Regulatory Office or ERO). In addition RWE Transgas legally separated RWE Gas Storage from the 1st of May 2007 to operate six underground gas storage facilities (with Negotiated Third Party Access). Moravské Naftové Doly a.s. and SPP Bohemia a.s. both own and operate one gas storage facility each. Since 2007, eight major DSOs, which have more than 90,000 connected customers and 92 smaller gas distribution licensees, are legally unbundled from supply. Local distribution system operators are not subject to these unbundling obligations. One regional distribution company is owned by E.ON Czech Holding AG and one by Prazská plynárenská Holding a. s. The majority shareholding in remaining six regional distribution companies is held by RWE Transgas or RWE Gas International BV.[1] Transportation tariffs are set by the Energy Regulatory Office (ERO) on the basis of the transport system operator’s duty to guarantee equal condition for all the shippers.
The downstream sector in the Czech Republic is fully privatized. Traders of former regional distribution companies are active in the supply sector, but to a large extent only in their former supply region. The major gas trader is RWE Transgas. New entrants in the upstream market usually directly serve big customers on the downstream market. The biggest new trader is VEMEX a.s. The market share of the new entrants is increasing but is altogether still less than 5%. [1], [2]
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