20101231-IEA-Oil_and_Gas_Emergency_Policy_Czech_Republic_2010_update_18页_1mb

Summary of Czech Republic's Energy and Oil/Gas Situation

Core Content

The Czech Republic is heavily dependent on oil and natural gas imports for its energy needs. In 2008, oil accounted for 21% and natural gas for 15% of the total primary energy supply (TPES). The country is working to reduce its reliance on coal, aiming to have less than a quarter of its energy supply come from coal by 2030, primarily through the increased use of nuclear and renewable energy sources. Despite this shift, natural gas is expected to play a growing role in the future energy mix.

Key Figures

Main Points

Oil

• Oil Dependency: Over 97% of oil demand is met by imports, primarily from the Former Soviet Union, especially Russia.
• Refinery Capacity: The country has a refining capacity of 198 kb/d, but domestic production is insufficient to meet all oil demand.
• Demand Breakdown:
  • Diesel accounts for 40% of total oil demand.
  • The transport sector consumes two-thirds of all oil.
  • Oil demand has remained relatively stable since 2005, with diesel demand growing at an average rate of 2.6% per year.
• Import Sources:
  • Russia is the largest supplier of crude oil.
  • Azerbaijan has increased its share of oil imports over the past decade.
• Infrastructure:
  • The Druzhba pipeline is the main crude oil supply route, but it has faced interruptions.
  • The IKL/TAL route offers an alternative, though access to spare capacity is limited.
• Storage:
  • Total oil storage capacity is 4.04 mcm (25.4 mb), split between crude oil and refined products.
  • MERO and ČEPRO are the main state-owned storage operators.
  • ASMR holds public emergency stocks, with a minimum of 90 days of consumption.
• Emergency Policy:
  • The ASMR is responsible for managing oil emergency reserves.
  • The Chairman of the ASMR can release stocks without government approval.
  • In case of a declared emergency, the ASMR can request demand restraint measures and loan stocks to industry.

Natural Gas

• Gas Dependency: Over 97% of natural gas demand is met by imports, primarily from Russia.
• Demand Breakdown:
  • Industry accounts for 33% of gas demand.
  • Residential use is the second-largest consumer.
  • Transformation (e.g., power generation) is the third-largest consumer.
• Import Volumes:
  • In 2009, the Czech Republic imported 8.006 bcm of natural gas.
  • The country transits approximately 30 bcm/yr of Russian gas to other European markets.
• Storage:
  • The Czech Republic has a relatively high capacity of underground commercial gas storage.
  • It does not have strategic reserves or fuel switching potential for responding to gas crises.
• Emergency Policy:
  • A response plan was established in 2009 to deal with potential gas supply reductions.
  • The plan relies on coordination with industry to optimize storage and regulate demand side measures.

Key Information

• Oil Consumption by Sector:
  • Transport: 63%
  • Diesel: 40%
  • Heating/other gasoil: 13.4% decline from 2005 to 2009.
  • LPG and Ethane: Slight decline.
• Natural Gas Consumption by Sector:
  • Industry: 33%
  • Residential: 25%
  • Transformation: 22%
• Energy Outlook:
  • The country aims to maintain its status as a net electricity exporter.
  • It plans to reduce coal usage and increase the share of nuclear and renewable energy.
• Emergency Response:
  • The ASMR is the main authority for oil emergency reserves.
  • The Czech government is establishing a stockholding obligation for industry, equivalent to 30 days of net imports, to be phased in from 2012 to 2021.
  • Demand restraint measures, such as driving restrictions and fuel rationing, are available in case of declared emergencies.

Conclusion

The Czech Republic relies heavily on oil and natural gas imports, with oil being primarily sourced from the Former Soviet Union and natural gas from Russia. The country has a well-established emergency response framework for oil, with the ASMR playing a central role in managing public stocks and coordinating with industry. However, it lacks strategic natural gas reserves and fuel switching options. The government is working to diversify its energy supply and enhance its emergency preparedness by increasing storage capacity and establishing industry-based reserves.