Equinor and Pražská plynárenská Sign 10-Year Gas Supply Agreement to Strengthen Czech Energy Security
Equinor, one of Europe’s leading energy companies and a key supplier of natural gas from the Norwegian continental shelf, has entered into a landmark long-term contract with Pražská plynárenská, the gas and electricity provider owned by the Capital City of Prague. Under this newly signed agreement, Equinor will supply natural gas to the Czech Republic for a period of ten years. Deliveries, which have already begun, will continue until 1 October 2035.
The deal marks a significant strategic development for both parties. For Equinor, it reinforces the company’s expanding presence in Central Europe and builds on its growing portfolio of long-term contracts across the continent. For Pražská plynárenská and the Czech Republic more broadly, the agreement provides increased security of energy supply at a time when European countries continue to reshape their energy strategies and diversify sources of natural gas.
A Strengthened Partnership Supporting European Energy Demands
The natural gas supplied under this agreement originates from the Norwegian continental shelf, one of the most reliable, stable, and mature natural gas-producing regions in the world. Norway has long been a critical energy partner for Europe, especially as countries work to strengthen energy resilience, reduce dependency on less secure supply routes, and navigate the ongoing transition toward cleaner energy sources.
Equinor’s pipeline infrastructure connects directly into the heart of Europe’s natural gas network. The company is widely recognized as Europe’s second-largest gas supplier and plays a crucial role in stabilizing energy markets during fluctuations in regional supply and demand. By entering into this agreement, Pražská plynárenská gains access to a dependable long-term supply that will support households and businesses throughout Prague and the wider Czech Republic.
The gas delivered will be used for a wide range of essential needs, including residential heating, power generation, and industrial consumption. For a country with a cold climate and a manufacturing-heavy economy, stability in natural gas availability is indispensable.
Leaders Emphasize Energy Security and Customer Reliability
Both companies highlighted the importance of this long-term agreement for energy security and customer confidence. Anders Opedal, Equinor’s Chief Executive Officer, expressed strong optimism about the significance of the collaboration.
“I am excited that we have made this agreement with Pražská plynárenská and that we now provide energy to homes and enterprises in the Czech Republic. This joins a string of long-term gas contracts we have signed across Europe in recent years, demonstrating the role gas plays for European energy security,” Opedal stated.
His remarks underscore a broader trend: European utilities and governments have increasingly sought dependable long-term arrangements with trusted suppliers following years of market volatility. Equinor’s continuing strategy has been to support that demand through consistent supply, strategic partnerships, and an emphasis on reliability.
On the Czech side, the enthusiasm was equally clear. Ludvík Baleka, Chairman of the Board of Directors of Pražská plynárenská, emphasized the value this agreement brings to the company’s customers, particularly in terms of reliability and long-term planning.
“This step will significantly strengthen the stability and reliability of natural gas supplies for Pražská plynárenská’s customers, and its scope will cover, among other things, a significant part of the total consumption of households supplied with natural gas by our company,” Baleka said.
Such assurances are vital for local consumers at a time when many European households have faced fluctuating energy prices and concerns about potential supply disruptions.
Expanding Equinor’s European Footprint
Although Equinor’s traditional markets have primarily been Northwest Europe and the United Kingdom, the company has been steadily diversifying its gas export destinations over the past decade. In recent years, Equinor expanded its reach toward the Baltics and Poland—regions that have been actively working to diversify their natural gas supplies and decrease reliance on single-source suppliers.
With this new agreement in the Czech Republic, Equinor cements its growing influence in Central and Southern Europe. This geographic expansion aligns with Europe’s broad energy policy goals, which prioritize security of supply, cross-border energy collaboration, and long-term resilience.
The Czech Republic, located at the crossroads of multiple European gas networks, has been working to reinforce its supply options. While the country has advanced in renewable energy deployment, natural gas remains a key component of its energy system, especially for heating and industrial use. A contract of this duration therefore improves the country’s ability to plan its energy transition while maintaining stability for consumers.
Contract Details and Confidential Terms
While the headline length of the contract—lasting through 2035—is publicly known, the parties have agreed to keep specific details such as volume, pricing, seasonal supply variations, and commercial conditions confidential. Such confidentiality is common in long-term gas supply agreements, particularly when they involve strategic infrastructure, complex market considerations, and competitive pricing structures.
Equinor will deliver the gas directly to the Czech hub, integrating smoothly into the country’s existing distribution system managed by Pražská plynárenská. This streamlined delivery mechanism ensures efficient distribution to end users across Prague and other regions served by the company.
A Strategic Step for the Czech Energy Landscape
The agreement between Equinor and Pražská plynárenská represents more than just a commercial contract—it reflects a strategic move to reinforce the Czech Republic’s long-term energy stability. As Europe continues to adapt to evolving energy markets, strengthen cross-border energy cooperation, and advance its decarbonization agenda, predictable natural gas supply plays a transitional yet essential role.
By securing reliable access to Norwegian natural gas for the next decade, Pražská plynárenská can anchor its planning around stable long-term resources, shield customers from potential disruptions, and support the country’s broader economic and energy objectives.
Source Link: https://www.equinor.com/
