Forbes: Czech GNCH concludes long-term contract with Norwegian company Equinor

Czech company Great North Canadian Holdings SE (GNCH) has entered into a long-term contract with Norwegian state-owned company Equinor for the supply of natural gas from the Norwegian Continental Shelf. Deliveries are scheduled to begin in May and will primarily be targeted at wholesale customers and gas traders, GNCH said. The company says it is the only domestic firm to have a direct contract with Equinor so far. The financial terms of the deal were not disclosed.

According to the company, the contract is to ensure stable multi-year direct supplies of Norwegian natural gas to the Czech Republic. "We are glad that we managed to bring the difficult negotiations, which took several months, to a successful conclusion. The long-term contract is an important strategic insurance at a time when Europe is still looking for ways to permanently reduce its dependence on Russia," said Mikuláš Klang, a member of the board of directors and spokesman for GNCH.

GNCH wants to focus primarily on large industrial or heating customers and gas traders. "These can be individual companies as well as groups that have had to look for reliable alternative sources of natural gas after last year's market turmoil," Klang said. So it will not supply gas to households.

In February, Industry and Trade Minister Jozef Sikela announced that gas imports from Russia to the Czech Republic fell to zero during January. The state has just replaced Russian gas with gas imports from Norway and LNG from the Netherlands and Belgium. Savings in consumption have also helped to reduce dependence on Russia.

GNCH SE was founded in 2017. It focuses on gas trading but has not been active so far. The sole shareholder is the Canadian company Great Northern Canadian Holdings Inc. It was recently registered as a new gas-clearing entity in the OTE central system.

Equinor ASA is an international energy company with operations in approximately thirty countries. The Norwegian State holds a 67 % stake in it. Its portfolio includes oil and gas, renewables and low-carbon solutions. The company is a leading operator on the Norwegian continental shelf.

Translated from the original source: Forbes.cz