Two companies applied for money that the European Union will provide to the Czech Republic to modernise its gas storage facilities – RWE Transgas and Moravské naftové doly (MND), a unit of the KKCG group of Czech entrepreneur Karel Komárek. Both companies’ spokespersons confirmed the information to the daily E15.
The deadline for applications for the financial support to the extent of EUR 35 million was in the middle of July.
In the beginning, it was counted rather on RWE Transgas projects, according to available information. Komárek’s company has then decided to join the battle for the nearly CZK 1 billion from the EU’s anti-crises package as well, claiming that it would be suitable to reinforce the competitive environment in the Czech Republic. “RWE Transgas has a dominant position in natural gas storage at the moment,” MND spokesman Dan Plovajko said.
On the other hand, RWE Transgas spokesman Martin Chalupský stressed that the firm was ready to share the EU subsidy with other applicants. Now the point will be whether both companies start fighting with each other or whether they seek, with the Industry and Trade Ministry’s assistance, a preliminary agreement on the money distribution. But such an agreement seems uncertain for the moment. RWE Transgas is asking for finance to extend two storage facilities – in Tvrdonice, south Moravia, and Třanovice, north Moravia. MND would use the EU subsidy to raise its storage capacity in Uhřice, south Moravia.
The final verdict on the money distribution is up to the European Commission, but Chalupský said the Czech ministry can provide Brussels with information and with a recommendation. Head of the gas industry department at the ministry, Jan Zaplatílek, said, however, it is the companies’ affair. “The state can hardly tell them to do this or that,” said Zaplatílek.
“It is the European Commission who decides on the distribution of the EUR 35 million based on criteria it has set. The ministry will act as a neutral administrator of the applications that companies have submitted,” ministry spokesman Tomáš Bartovský said. The ministry has already provided the necessary political support in Brussels to both applications.
A well informed source told E15, however, that even Brussels would welcome it if Czechs came to terms. And it would be also useful from the viewpoint of promoting Czech interests because both projects are reasonable.
Dan Plovajko of MND also admitted that the company was willing to continue a discussion in this respect, providing however that somebody comes up with specific proposals. “It is the Industry and Trade Ministry’s affair,” said Plovajko, adding that MND primarily had to comply with the entry criteria.
In the case of both companies, the European grant would only cover a part of costs of expanding the storage facilities. Martin Chalupský for instance confirmed that RWE Transgas wanted to increase its storage capacity by a third, which would require a CZK 7 billion investment in two years.
MND plans to extend its Uhřice storage tank by the end of 2011 as well. Plovajko reminded that finishing the project in that deadline was one of the entry criteria. That is why it is virtually impossible to draw the EU money to build a new storage facility, for instance.
Ferran Tarradellas Espuny, spokesman for the EU Energy Commissioner, said earlier that the anti-crisis measures should be put in place as soon as possible. Another reason why the EU supports investments in gas storage facilities is to boost energy security after the gas crisis at the beginning of this year.
