Today Prague a Gazprom delegation has taken part in the ceremony dedicated 40th anniversary of Russian natural gas deliveries to Czech Republic. The Gazprom delegation was composed of Valery Golubev, and Alexander Medvedev, Deputy Chairmen of the Gazprom Management Committee, Valery Podyuk, Member of the Gazprom Management Committee, Head of the Gazprom Gas, Gas Condensate and Oil Production Department.

The ceremony was attended by representatives of Gazprom export top management and Gazprom partners in Czech Republic such as RWE Transgas and Vemex.

“Even during the periods of serous socio-economic and political reinforcements in Europe in 1990s Russian side fulfilled its obligations related to natural gas deliveries in Czech Republic. We are sure that out joint work will stimulate further strengthening of positions on the international energy market,” specified Alexander Medvedev in his opening speech.

The Gazprom representatives underscored that the long-term contracts are the basis of natural gas export to Europe including Czech Republic, which basically maintain energy security of the region.

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In 1967 former Czechoslovakia became the first country, which received Russian natural gas via the export gas main. Since that time Gazprom supplied more than 200 bcm of gas.

Currently contracting export volume of natural gas to Czech Republic is at 8.5 bcm of gas per annum, where nearly 2 bcm are supplied as payment for gas transit.

The main partner of Gazprom Group in the Czech Republic is RWE Transgas. The existing deals to supply Russian gas to the Czech Republic and for gas transportation were signed in 1998 and 1999, respectively and in 2006 the deals were prolonged until 2035. In last 10 years Gazprom transited more than 293 bcm of gas via Czech Republic.

In the frames of the EU policy starting from January 1, 2007 gas market of the Czech Republic was totally liberalized. In March 2006 Gazprom export and Vemex s.r.o. signed a deal to supply gas to the Czech Republic stipulating the actual diversification of gas supplies to the country’s market as well as due to Gazprom Group stake ownership in  in Vemex shareholders equity, gas marketing to final consumers.

On October 10, 2007 Gazprom export and Vemex signed a long-term contract pursuant to which during 2008 – 2012 Gazprom will supply some 500 mcm per annum. The contract stipulates an opportunity to prolong the deal for 5 years.

The natural gas share in the energy balance of the Czech Republic exceeds 16 per cent. More than 60 per cent of households utilize natural gas. Natural gas is also used in the chemical industry.