- Supply contract with Gazprom for the Czech Republic extended to 2035
- Liquefied natural gas business to grow through RWE Gas Midstream
The RWE Group is strengthening its successful gas business at international level. To this end, the Company has extended its gas supply contract with Gazprom export Ltd. for the Czech Republic until 2035. This will ensure supplies to an essential part of the European natural gas market in the long term. The contract provides for the supply of 9 billion cbm annually. With this step, RWE is strengthening security of supply and the continued development of a competitive gas market.
Cooperation concerning the transit of Russian gas through the pipeline network of
RWE Transgas in the Czech Republic will also be continued in the long term. A transit agreement scheduled to last until 2035 has also been signed. The network of RWE Transgas in the Czech Republic is not only used to secure the supply of the Czech market, but may even be considered to be a key pillar of the entire European natural gas supply system. Approx. one third of all Russian natural gas supplies to Western Europe are transported through the Czech Republic. This agreement provides the basis for continuing gas transit cooperation after the completion of the Baltic Sea Pipeline.
In addition, RWE will strengthen its active role in the European gas industry with the establishment of RWE Gas Midstream, a new company that will start operations on 1 January 2007. Besides its ambitious plans to expand its own gas production and pipeline-based gas trading activities, the company will primarily focus on the promising liquefied natural gas business. For this purpose, RWE has acquired stakes in terminals in the Netherlands and Croatia, which are currently under construction. Moreover, other forward-looking marketing strategies are being pursued. In a partnership with US-based Excelerate Energy, RWE will be offering additional capacities through a new technology according to which the liquefied natural gas is processed on tankers. This environmentally sound technology eliminates considerable costs related to land-based regasification.
Harry Roels, Chief Executive Officer of RWE AG, said: “It is in the interests of consumers that we provide a positive stimulus to competition in the German and European gas markets. This requires the provision of additional gas, the improvement of transport channels and competitive consumer prices in the future. RWE is assuming a key role in this process.”