iROZHLAS: MGS has suspended the lease of gas storage facilities in Moravia to Gazprom

iROZHLAS: MGS has suspended the lease of gas storage facilities in Moravia to Gazprom

iROZHLAS: MGS has suspended gas storage leases in Moravia to Gazprom

Logo of the Russian energy company Gazprom.

Dambořice (Hodoninsk) – Moravia Gas Storage (MGS), which operates a gas storage facility in Dambořice in Hodoninsk, has suspended its lease to the Russian company Gazprom. It is a reaction to further sanctions against Russia. The contract is suspended until the end of March next year. It was reported by the iROZHLAS server. Gazprom is a co-owner of MGS.

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In addition to Gazprom, MGS also belongs to MND (Moravské naftové doly), which is part of the KKCG investment group of entrepreneur Karel Komárek. The reservoir in Dambořice is the newest gas reservoir in the Czech Republic and one of the most modern in Europe. According to KKCG, its total capacity is 448 million cubic meters. Gazprom has to pay Komárk's company 7.5 billion crowns for the 15-year lease of the vast majority of capacity.

At the end of February, the European Union approved the tenth package of sanctions due to the Russian invasion of Ukraine. “According to the sanctions package, MGS cannot provide gas storage services to Gazprom Export, so performance of the contract was suspended for the duration of these sanctions. The entire storage capacity was subsequently sold to traders authorized to operate on the energy market in the Czech Republic, for the entire season from April 2023 to the end of March 2024,” Pavel Marek, a member of the board of directors of MGS, told the server.

Last summer, the state already took away gas storage capacity from 13 companies, which they did not use. It was the capacity of Moravia Gas Storage that dominated the total amount taken, it was 242 million cubic meters in Dambořice. The semi-state energy company ČEZ then filled the storage tanks with gas.

KKCG also started negotiations with the Czech government last year on transferring the exercise of shareholder rights in Moravia Gas Storage to the Czech state. In September, it signed an agreement on mutual understanding with the state-owned company Prisko, which related to a possible transaction. “Negotiations are not concluded yet,” KKCG spokeswoman Dana Dvořáková told the server.

The joint venture between the Czech company MND and the Russian Gazprom Export was established in 2013, when the construction of the Dambořice underground gas storage facility also began. The company Moravia Gas Storage to invested more than 2.5 billion crowns in the project.