PRESS RELEASE

NET4GAS began to build the first part of the strategic gas pipeline GAZELLE

§  NET4GAS, the independent natural gas transporter will build a new border transfer station near Brandov

§  Gazelle, the new gas pipeline, will enhance the security of supplies in the Czech Republic

§  Thanks to Gazelle, the Czech Republic will maintain its strategic position for Europe’s natural gas supplies

Brandov, 14 October 2010 – NET4GAS, s.r.o. today began to build a new border transfer station in Brandov, which is of key importance for the new high-pressure gas pipeline Gazelle, which is currently being built. The ceremonial tapping of the foundation stone took place in the presence of Ing. Martin Kocourek, the Minister of Industry and Trade of the Czech Republic, Jana Vaňhová, the President of the Ústí Region, and Václav Bartuška ambassador of the Czech republic for Energetic Security.

The GAZELLE pipelines open new alternative ways to access strategic resources which is a keypart of the energy policy of the Czech Republic," says Martin Kocourek, minister of Industry and Trade of the Czech Republic. "Opening new pipelines and further interlinking the Czech Republic with our neighbours was also among the recommendations given to us by the International Energy Agency in its audit of the Czech energy policy.

The building permit obtained by the transmission system operator, makes it also possible to lay the first part of the transit pipeline GAZELLE, which is approximately 300 metres long and leads from Olbernhau, Germany, to Brandov.

“The GAZELLE pipeline is a new transmission route for Russian gas, which will enhance the security of gas supplies in the European Union. In the event of the interruption of gas supplies via Ukraine, it will have a strategic importance both for the Czech Republic and for all surrounding countries,” said Thomas Kleefuss, the Executive Director of NET4GAS, s.r.o. He went on to say, “The planning permission has already been issued for the remaining part of GAZELLE. We are now waiting for the establishment of easements with the last owners of plots which the pipeline should cross. The total amount of our investment should amount to approximately 400 million Euros.”

The GAZELLE project has been planned to follow a route along gas pipelines that are already in operation. The only new area which it crosses is between Mladotice and Chomutov, but it will be a long way off the towns and populated areas. The GAZELLE pipeline will be connected to the existing gas system in the Czech Republic via in Brandov, Jirkov, Sviňomazy and Přimda.

“The construction of a new pipeline will make room in the current transmission system. It will open up the possibility to direct supplies to the Czech Republic via new, alternative routes, such as the planned NABUCCO pipeline. As a result, GAZELLE will significantly enhance the security of supplies to the Czech Republic and, at the same time, it will promote competition on the Czech gas market,” T. Kleefuss explained.

The GAZELLE pipeline will be part of the so-called “northern transmission route”, which will bring natural gas to Europe from hitherto little used reservoirs in the Tyumen Oblast. The Nord Stream and OPAL pipelines whereby gas will be transported from Russia on the bottom of the Baltic Sea to Germany and then on to the Czech border will be expanded. The total length of the GAZELLE pipeline is planned to be 166 km and it should go from Brandov to the border transfer station Rozvadov/Waidhaus. There it will be connected to the transit system MEGAL whereby gas is transported across Southern Germany on to France.

Milan Řepka

Spokesperson of NET4GAS, s.r.o.

NET4GAS is a reliable, high-performing and safe transmission system operator and provides for available and sufficient supplies for both domestic and foreign partners. NET4GAS guarantees a non-discriminatory access to the transmission system for all natural gas traders.

NET4GAS, s.r.o., transports natural gas in the Czech Republic by a system of 3642 kilometres of pipelines. Natural gas is the most environmentally friendly of all non-renewable sources of energy. Unlike solid fuels, it does not leave ash after burning, nor does it produce hazardous emissions detrimental to the environment.

NET4GAS, s.r.o. / Na Hřebenech II 1718/8 / GSM: +420 739 537 461
140 21 Prague 4 – Nusle / Email:
Czech Republic / Web: www.net4gas.cz