Bloomberg: Dispute breaks out over Germany 'hoarding' gas from Czechia

International news agency Bloomberg writes that, according to a letter from Czech Minister of Industry and Trade Jozef Síkela, Germany is purposefully reducing the capacity of a gas pipeline meant for Czechia. This comes at a time when Czechia is struggling to replace supplies from Russia.

The letter, obtained by Bloomberg, accuses Germany's transmission system operator Gascade Gastransport of cutting the output capacity of the connection point on the border, from 69 gigawatt hours to 14.5 gigawatt hours starting Oct. 1.

The Czech minister wrote to European Commission Commissioner for Energy Kadri Simsonová, as well as German Economy Minister Robert Habeck, expressing concern over the impact of this decision on the region's energy independence. The move could potentially undermine the spirit of cooperation in Europe and make it harder for eastern European countries to reduce their reliance on Russian gas, Síkela says.

"This situation creates an incentive for some member states to maximize gas imports from the east," surmised Síkela, according to Bloomberg.

A spokesperson for Gascade stated that the reduction in capacity is due to lower overall gas volumes in the German system, as Russian imports have been eliminated. However, the Czech Republic may still be able to reserve a portion of the unused capacity in the short term.

According to U.S. investment bank Goldman Sachs, Central Europe will become even more dependent on gas supplies from the northwest pipeline after the transit agreement for Russian gas through Ukraine expires in January. Additionally, gas supplies from Germany have declined since last summer, as more countries turn to LNG instead, according to bank analyst Samantha Dart.

This is not the first time the Czech Republic has accused Germany of hindering their energy independence. Last year, they accused Germany of increasing the fee for gas storage from EUR 1.86 (CZK 47) to EUR 2.50 (CZK 63) per megawatt hour, which they claimed hurt their efforts to reduce reliance on Russian gas. Germany has since agreed to abolish the fee starting in January.

As the EU seeks to lower its dependence on fossil fuels from Russia, the Czech Republic's concerns highlight the importance of maintaining cooperation and fair gas trade within the region. The decision made by Germany's transmission system operator could have long-lasting effects on the region's energy landscape.