Slovak state-owned gas supplier SPP has entered into a short-term pilot contract for natural gas supplies with the State Oil Company of Azerbaijan (SOCAR). If the pilot proves successful, SPP may explore a longer-term partnership with SOCAR.
SPP has diversified its gas procurement strategy by securing contracts with major international energy companies, including bp, ExxonMobil, Shell, Eni, and RWE. These agreements offer flexible volumes and timing, ensuring that SPP can meet up to 150% of its customers’ gas consumption needs. The company has built a 50% surplus of gas supply, which can be increased to a full 100% reserve if necessary, ensuring uninterrupted supply for its customers.
SPP Chairman and CEO Vojtech Ferencz reaffirmed the company’s commitment to maintaining gas transit through Ukraine, highlighting it as the most cost-effective option. However, recognizing the risk of potential disruptions to eastern pipeline routes, SPP is implementing contingency strategies to guarantee secure supplies to all customers, including large industries and households.
In the event of interruptions to Ukrainian pipeline flows, Slovakia can rely on alternative transit routes through neighboring countries. SPP’s preferred winter route runs from Germany through the Czech Republic, for which it has secured adequate transit capacity. Should supplies via Ukraine stop entirely, SPP may look to the southern TurkStream pipeline route, which passes through Turkey, Bulgaria, Serbia, and Hungary, as a potential pathway for Russian or Azerbaijani gas.
Ferencz also noted that SPP has increased its underground gas storage in Slovakia by around 20% compared to last year. The company has committed to filling its storage to 100% at the start of both the 2024 heating season and by the beginning of 2025. With a combination of diversified contracts, secure transit routes, and robust reserves, SPP is well-positioned to ensure reliable gas supplies this winter and into the future.
In the event of a complete halt in Ukrainian supply, SPP is preparing additional measures to safeguard gas security for the remainder of 2025 and beyond.
