Slovakia to Buy More Russian Gas as Iran War Sparks Supply Fears

Article content(Bloomberg) — Slovakia will boost purchases of natural gas from Russia this year as the prospect of shortages caused by the Iran war has countries rushing to lock in supply.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentThe nation’s largest state-owned gas supplier, Slovensky plynarensky priemysel, will cover 100% of its fuel needs with Russian flows as of April — up from 33% last year — after it signed an amendment to an existing contract with Gazprom PJSC. Michal Lalik, director of SPP’s trade division, said the move is “absolutely crucial” in the current market turmoil, and that supply negotiations for the first three quarters of 2027 will begin soon.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentMajor energy consumers from Taiwan to India have rushed to secure extra supplies this week as the raging Middle East conflict sparks fears that energy trade disruptions could last for months to come. Oil and European gas prices have soared by the most in years this week, with Europe particularly vulnerable to tighter global gas supplies as its reserves are nearly depleted.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentRussia is winning from the turmoil on multiple fronts, as Indian refiners have also boosted purchases of its crude following a temporary waiver from the US. There are fewer options for selling more Russian gas, especially in the European Union, where new, short-term, or renewed contracts with Russia are gradually being banned this year.Article contentSlovakia is among few buyers in the region that can use its existing long-term contract to add supply — before those deals are also banned in late 2027. It won’t, however, be shielded from price increases as its contract with Gazprom is linked to European gas price indexes, Lalik said.Article contentThe company maintains several flexible contracts with global suppliers to diversify sources, but those are even more expensive because of extra transport costs, he added. Current prices threaten Europe’s efforts to rebuild gas reserves this summer, and if the market conditions persist, EU gas storage rules may require government intervention, Lalik said. Article contentArticle content“We’ve long criticized the European Union’s decision to pursue a phaseout” of Russian gas, Lalik said. “The current situation shows that the EU decision has not been the right one.”Article contentSlovakia’s Prime Minister Robert Fico has called Europe’s plan to ban Russian gas “energy suicide.” Officials in Brussels have repeatedly said it will remain in place, even after some of them raised concerns about the region’s over-reliance on US gas.Article contentEarlier this week, Russian President Vladimir Putin said his country will consider ending most sales of gas to Europe in favor of more promising alternative markets.Article contentTrending Beer, wine sales fall even more, putting tax revenues on the rocks, but one boozy drink is on the rise Retail & Marketing ‘As dead as fried chicken’: Why Trump finally fired Noem Economy CNRL says it will delay $8-billion mine expansion until carbon pricing rules are clear Oil & Gas These eight charts show 'rupture' with Canada under Trump's tariffs Economy Posthaste: Canadians are paying more than lip service to Buy Canada — and now the numbers prove it News Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Beer, wine sales fall even more, putting tax revenues on the rocks, but one boozy drink is on the rise Retail & Marketing ‘As dead as fried chicken’: Why Trump finally fired Noem Economy CNRL says it will delay $8-billion mine expansion until carbon pricing rules are clear Oil & Gas These eight charts show 'rupture' with Canada under Trump's tariffs Economy Posthaste: Canadians are paying more than lip service to Buy Canada — and now the numbers prove it News