Oil and Gas in the Czech Republic
PhDr. Tomáš Vlček, Ph.D.
International Relations and Energy Security
Department of International Relations
and European Studies
 Oil production in the Czech Republic in 2016 reached the value of 0.116 milion tons,
ie 2% of imports in the Czech Republic in 2016
Total imports in the Czech Republic is between 5.3 and 7.3 milion tons of oil
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Crude Oil Supply Issues
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Deposits, reserves and mine production of oil in the Czech Republic
2010 2011 2012 2013 2014 2015 2016
Deposits – total number 34 33 34 39 37 38 39
- exploited 27 27 27 30 29 28 33
Total mineral reserves 29 015 30 891 30 781 28 811 27 094 28 953 28 959
- economic explored
reserves
15 424 20 326 21 108 21 236 21 100 21 402 21 428
- economic prospected
reserves
4 475 3 983 4 092 1 758 1 747 1 735 3 355
- potentially economic
reserves
9 116 6 582 6 581 5 817 5 816 5 816 5 816
- exploitable (recoverables)
res.
1 415 1 664 1 628 1 534 1 449 1 379 1 504
Mine production 173 163 150 152 148 126 116
Note: reserves numbers in kilotons (kt).
Source: Ministerstvo životního prostředí / Česká geologická služba – Geofond.
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Pipeline Routes in the Czech Republic
Druzhba IKL
Start of Supply 1962 (Slovakia), 1964 (Czech
Rep.)
1996
Transport Capacity (Mt/y) 9 10
Supply Volume (tons, 2014) 4.981 2.359
Percentage Rate (%, 2014) 67.6 32.4
Supply Volume (tons, 2015) 4.727 2.405
Percentage Rate (%, 2015) 66.3 33.7
Supply Volume (tons, 2016) 3.729 1.596
Percentage Rate (%, 2016) 70.0 30.0
Utilization (%,
2014/2015/2016)
55.3 / 52.5 / 41.4 23.6 / 24.1 / 16.0
Source Russia, Kazakhstan Algeria, Azerbaijan, Italy,
Kazakhstan, Libya, Nigeria,
Norway, Russia, Syria
Pipeline Transit Countries Russia, Belarus, Ukraine,
Slovakia
Italy, Austria, Germany
Note: The route of the south branch of the Druzhba pipeline, which transports supplies to the Czech Republic, crosses
Almetevsk - Kuybyshev - Unecha - Mozyr - Brody - Uzhhorod - Sahy - Litvinov. Also, crude oil coming from Russia is not
necessarily Russian.
Source: Ministry of Industry and Trade of the Czech Republic, 2009d, p. 1, Czech Association of Petroleum Industry and
Trade, 2010, p. 8; "Druzhba Pipeline", 2009, p. 56; Ministry of Industry and Trade of the Czech Republic, 2011, p. 15
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 The Czech oil market can be vertically divided into five levels
◦ international carrier oil (MERO ČR, a.s.)
◦ processing plants (Unipetrol RPA, Paramo, a.s.)
◦ distributor (ČEPRO, a.s.)
◦ traders in crude oil and oil products (such as Unipetrol, a.s.,
BENZINA, s.r.o., Shell Czech Republic a.s., OMV Česká
republika, s.r.o., EuroOil, a.s., RoBIN OIL s.r.o., LUKOIL
Czech Republic s.r.o.)
◦ Outside these four there is a fifth level, the Czech production
companies (Moravské naftové doly a.s., Česká naftařská
spol. s.r.o., UNIGEO a.s.)
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Oil Consumption in the Czech Republic by sector
Total Consumption 9.927 (100 %)
Transformation 0.452 (4.55 %)
Industry 2.695 (27.15 %)
Transport 6.408 (64.55 %)
- Petrol 2.099
- Diesel 3.691
- Aviation Fuels 0.370
- Other 0.248
Other Sectors 0.372 (3.75 %)
Note: 2007 data in Mt. Data including oil products imports, which reached 2.25 Mt in
2007. Net imports of crude oil had reached 7.26 Mt, and domestic production of crude
oil amounted to 0.25 Mt.
Source: International Energy Agency, 2009g, p. III.139.
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Oil Refining in the Czech Republic
Total Rafinery Intake 8.780
Refinery Losses 0.042
Total Refinery Output 8.738 (100 %)
- LPG and ethane 0.210 (2.40 %)
- Naphtha 0.838 (9.59 %)
- Kerosene 0.170 (1.95 %)
- Petrol 1.622 (18.56 %)
- Diesel 3.595 (41.14 %)
- Fuel Oil 0.335 (3.84 %)
- Other Products 1.968 (22.52 %)
Note: Assessment of IEA for 2008, in Mt. Data including total domestic production of oil
and natural gas (0.566 mil. ton).
Source: International Energy Agency, 2009g, s. III. 139.
+3 million tons of oil products import
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TPES
Gas 15,7 %
Oil 20,9 %
Nuclear 15,3 %
Coal 45,3 %
Water 0,4 %
Other 2,5 %
Aktuální projekty a problémy v ropném sektoru VII
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(zdroj: petroleum.cz)
Natural Gas
 Natural Gas Diversification and Liberalization Issues
 Natural Gas production in the Czech Republic in 2016 reached the value of
0.169 bcm/y, ie 2% of imports in the Czech Republic in 2016
 Total imports in the Czech Republic in 2016 amounted to 8.12 bcm/y
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Deposits, reserves and mine production of natural gas in the Czech Republic
2010 2011 2012 2013 2014 2015 2016
Deposits – total number 94 83 90 96 93 95 96
- exploited 52 48 46 40 40 46 64
Total mineral reserves 28 924 30 172 30 506 31 085 27 949 30 948 30 839
- economic explored reserves 6 123 7 374 7 243 7 646 7 491 7 494 7 381
- economic prospected
reserves
2 281 2 335 2 791 2 981 2 956 2 998 2 977
- potentially economic
reserves
20 520 20 463 20 472 20 458 20 458 20 456 20 481
- exploitable (recoverables)
res.
4 767 4 660 4 886 5 512 5 064 5 057 4 918
Mine production 201 187 204 207 198 200 169
Note: reserves numbers in bcm.
Source: Ministerstvo životního prostředí / Česká geologická služba Geofond.
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Natural Gas Supplies and the Most Important Companies in the Gas Sector
Russian Federation Kingdom of Norway
Launch of Supply 1967 1997-2017
Volume of Supplies (bcm/y,
2009)
5,099 3,0
Share (%, 2009/2016)* 58.81 / 99.975 34.60 / 0.025
Resource Areas Mostly from the fields of
Urengoy, Yamburg and
Medvezhye
Fields Draupner E, Sleipner, Troll
A, Mikkel, Kristin and other
fields in the continental shelf of
the Norwegian Sea
Transit Countries Ukraine, Slovakia Germany
Conclusion of Current Contract October 1998, 2006** May 1st, 1997***
Contract Until 2035**** Until 2017
Volume of contract 8-9 bcm/y 53 bcm in total, ca. 3,0 bcm/y
* Zbylých 4,59 % představuje dovoz ze Spolkové republiky Německo, v objemu 571 mil. m³.
** In October 1998, a contract between Transgas, a. s. and OOO Gazexport was signed for the
supplies of 8 to 9 bcm/y of natural gas for the period of 15 years. Thee contract with a defined price
and transport route should run until 2013. In 2006, RWE Transgas, a. s. (successor to Transgas, a. s.)
extended the contract until 2035. This extension nevertheless did not include the definition of the gas
price or transport route.
*** With Statoil, Norsk Hydro a Saga Petroleum
**** This, at the same time, means the definite securing of the Czech Republic’s transit position until
this year, as one third of the natural gas supplied by Russia to Western Europe will continue to be
transported through Czech territory.
Source: T. Vlček; supply volumes and contracts according to Ministerstvo průmyslu a obchodu ČR,
2010g, s. 4-5; Kastl, 2008.
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Underground Natural Gas Storage Reservoirs in the Czech Republic and their Maximum Capacity as of
January 1st, 2009
Reservoir Owner Type of Reservoir Peak Withdrawal /
Injection Capacity
(mcm/d)
Capacity
(mcm)
Lobodice RWE Gas Storage, s. r. o. Aquifer*
36.5 / 26.9
177
Tvrdonice RWE Gas Storage, s. r. o. Depleted Field 460
Štramberk RWE Gas Storage, s. r. o. Depleted Field 480
Dolní Dunajovice RWE Gas Storage, s. r. o. Depleted Field 900
Háje RWE Gas Storage, s. r. o. Cavern** 64
Třanovice RWE Gas Storage, s. r. o. Depleted Field 240
Uhřice Moravské naftové doly, a.
s.
Depleted Field 6 / 2.9 180
Dolní Bojanovice SPP Bohemia, a. s. Depleted Field 9 / 7 576
Total in the Czech Republic: 51.5 / 36.8 3077
Láb I-III***
(Slovakia)
Nafta, a. s., divize PZPP Depleted Field 27.5 / 22 500
Total: 79 / 58.8 3577
* Aquifer is an underground layer of a water-bearing permeable rock from which groundwater can be
extracted by using a water well. An aquifier reservior functions by pressing gas to the underground waterbearing
bedrock so that that pressure artificially causes water to release to the lower layers.
** Cavern reservoir is created artificually, usually at places of former salt and coal mines. Haje reservoir is
built at the space where uranium mines originally lied.
*** Overall capacity of the reservoirs is 2130 mcm of natural gas. Aside from Láb I-III, there is also the Láb
IV reservoir in Slovakia, owned by the Pozagas a. s. company. This reservoir’s capacity amounts to 620
mcm and the maximum withdrawal and injection capacity is 6.85 mcm/d.
Source: „GSE Storage Map“; Česká plynárenská unie, 2009b; compiled by T. Vlček.
Mapa podzemních zásobníků na zemní plyn
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 The biggest player on the Czech gas market is the German RWE concern, it owns
2 key companies:
◦ RWE Transgas, a.s. (gas and power trader, responsible for two contracts for the
purchase of natural gas from Russia and Norway)
◦ NET4GAS, s.r.o. (owner of the gas network in the Czech Republic that procures the
transit of Russian natural gas to Western European countries as well as supplies gas to
particular regions through the pipeline system, RWE decided to sell NET4GAS, s. r. o.
for more than 41 billion CZK to the Consortium of German Allianz Insurance
Company and Canadian Borealis Investment Fund in 2012)
◦ RWE Gas Storage, s.r.o. (the biggest owner of underground natural gas storage
facilities, 6 of 9)
 Other important players include:
◦ Česká plynárenská, a.s. (gas trader, the company focuses solely on direct supplies to
licensed natural gas traders and on small and middle businesses with many off-take points)
◦ E.ON Česká republika s.r.o. (provides the regional distribution network and supplies to
local customers in the South Bohemian Region since 2007)
◦ VEMEX s.r.o. (is the main alternative supplier of natural gas in the Czech Republic. At the
end of April 2010, VEMEX acquired 10% of the Czech natural gas market . The German
company ZMB GmbH is a majority owner of VEMEX (51%) and is fully owned by
the Russian OAO Gazprom. The remaining share is split between the companies
Centrex Europe Energy & Gas AG, which owns 33 % of stocks, and EW East-West
Consult AG with a roughly 16 % share.) Because of serious debts in 2018 shut
down and was taken over by Wingas (also Gazprom). 20
 The Czech system of gas pipeline operators who participate in the gas
market is constituted by three different kinds of players: those involved in
gas transit, gas distribution and gas sales :
 1) The current holder of an exclusive license for gas transit is NET4GAS, s. r.
o., which operates more than 3600 km of gas pipeline
 2) Eight operators of regional distribution networks, who own their own
facilities, are directly connected to the transit network
 3) more than 80 operators of local distribution networks, who own their
own facilities, are not connected to the transit network
 4) Gas traders
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 Trade with gas is specific in that it proceeds on the bases of long term contracts, in spite of
the developing EU liberalization activities
 96% of natural gas supplies are provided by two companies.
◦ Moravske naftove doly, a. s. procures the supplies from domestic production. These
amount to less than 1% of the demand in total.
◦ RWE Transgas, a. s. has concluded contracts with OOO Gazprom Export, the supplier of
Russian gas, until 2035 and with a consortium of Norwegian producers (ExxonMobil
Production Norway Inc., Statoil Hydro ASA, Norske ConocoPhillips AS, TOTAL E&P NORGE
AS, ENI Norge AS) until 2017.
◦ WINGAS GmbH & Co.KG. (formerly VEMEX s. r. o.) has contracts with OOO Gazprom
Export until 2012 with a possibility of further extension.
◦ Since 2008, other companies have also started to import natural gas to the Czech
Republic: Ceska plynarenska, a. s., which obtained the purchase contract for gas in
Norway (0.1 % of total Czech import of natural gas in 2008), companyLumius, spol. s r.
o., which buys natural gas mainly in Germany (0.5 % of total Czech import of natural gas
in 2008) and German company WINGAS GmbH & Co.KG. (1.7 % of total Czech import of
natural gas in 2008).
◦ Although the expansion of suppliers with natural gas becomes a modern trend, the
extent of contracts is still rather insignificant and it does not have a major impact on the
gas market. 22
 Since 2007 the gas sector is fully liberalised (98/30/EC, 2003/55/EC, 2009/73/EC)
 There were 122 licensed gas traders on 1. 1. 2011
 The Czech Republic is provided with gas supplies on the basis of the long term contracts
with producers, which limits its implementation of EU liberalization measures, but, on the
other hand, provides stability and guarantees to both exporters and importers.
 The Czech Republic will, therefore, with great likelihood remain an important transit
country, while the natural gas producers will continue using the Czech territory for transit
purposes, which is by itself a safeguard of the maintenance of supplies for its own needs.
 The long term contracts with suppliers, however, limit its liberalization efforts. If the
greatest part of natural gas is provided to the Czech Republic on the basis of the long term
contracts, intrastate liberalization and the growth of new traders would de facto face the
fact that one and the same gas is being traded only with more mediators in between.
 Almost all of the gas the gas traders sell comes from Transgas
 Liberalization is in that manner still unfinished and it will not take place in an effective
manner in the forthcoming period either.
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Natural Gas Consumption in the Czech Republic by sector
Total Consumption 8 622 (100 %)
Transformation Purposes 1 145 (13.3 %)
Electricity Generation 12
Combined Heat and Electricity Generation 506
Heat Generation 627
Energy Industry 142 (1.6 %)
Distribution Losses 106 (1.2 %)
Industry 3 073 (35.7 %)
Transport 55 (0.6 %)
Other Sectors 4 101 (47.6 %)
Trade and Public 1 485
Households 2 495
Agriculture (inc. Fishery) 81
Other 40
Note: 2007 data in bcm.
Source: International Energy Agency, 2009f, s. IV. 116.
 Czech Republic as EU gas transit country
◦ Geography
◦ Great infrastructure (still the only reverse flow system
in Eastern Europe)
◦ Czech and EU projects strengthen this position
◦ Enhancement of the strategic reservoirs
◦ Increase in consumption due to natural gas use in
electricity production and transportation
◦ Infrastructure developments related to SEP 2015
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Current projects in the gas sector
1 –Stork II pipeline until 2020 (connection to Poland, 7 bcm to PL, 5 bcm to CR)
2 – Increasment of the connection of the underground reservoirs Tvrdonice and Dolni Dunajovice in the
Southern Moravia to the transit system
3 – North-South gas corridor enhancement and reverse flow capacity enhancement (Moravia pipeline, 32 km,
14 bcm)
4 – Gazela pipeline (166 km, Brandov-Weidhaus, 33 bcm)
5 – pipelines to Austria (BACI)
6 – reservoirs development (0.45 bcm in Dambořice commissioned in 2016), Dolní Rožínka, Uhřice
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http://www.gasconnect.at/en/Fuer-Kunden/Sales-Transmission%20neu/Netzentwicklungsplanung/BACI
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Planned Projects to Increase the Capacity of Existing Reservoirs or to Develop New Underground Gas
Storage Facilities in the Czech Republic
Reservoir Owner and Investor Increase in Capacity
(mcm)
Year of Completion of the
Project
Lobodice RWE Gas Storage, s. r. o. - Tvrdonice
RWE Gas Storage, s. r. o. + 45
+105
April 1st, 2010
2012
Štramberk RWE Gas Storage, s. r. o. - -
Dolní
Dunajovice
RWE Gas Storage, s. r. o. - Háje
RWE Gas Storage, s. r. o. + 14 2014
Třanovice RWE Gas Storage, s. r. o. + 290 2012
Uhřice Moravské naftové doly, a. s. + 150 2012
Dolní Bojanovice SPP Bohemia, a. s. - Rožná
- Julie Česká plynárenská, a. s.,
investor GSCeP, a. s.
80 2017-2018
Rožná - Sára Česká plynárenská, a. s.,
investor GSCeP, a. s.
100 2017-2018
Okrouhlá
Radouň - Helena
Česká plynárenská, a. s.,
investor GSCeP, a. s.
100-150 2015-2016
Dambořice Moravské naftové doly, a. s.,
with Gazprom Germania
448 2016
Total new capacities in the Czech Republic: 1332-1382 2018
Prospective total capacities in the Czech
Republic (including the existing ones):
4409-4459 2018
Prospective total capacities of the Czech
Republic (including Láb I-III):
4909-4959 2018
Source: compiled by author.
 The capacity of the reservoirs is about was increased to 4.3 bcm by 2018
and thus cover almost half of the annual consumption of the country.
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