CEZ expands gas network with acquisition of Gas Distribution

Prague, Sept 5 (CTK) - Semi-state energy group CEZ has bought a 100 percent stake in Gas Distribution, which operates the gas network in South Bohemia and part of Vysocina, so CEZ will now distribute gas throughout the Czech Republic, except for Prague, CEZ spokesman Martin Schreier told CTK today.

Neither company disclosed the price of the deal.

"Nuclear power plants and renewables will play a key role in electricity generation in the future. At the same time, gas will also play an important role as a source for steam-gas power plants and for new Czech thermal power plants, which will replace the ending coal-fired power plants in the Czech Republic," said CEZ CEO Daniel Benes.

By acquiring Gas Distribution, CEZ will add a stable company to its portfolio in the regulated part of the business, which is advantageous for shareholders, Benes added.

CEZ acquired Gas Distribution through its subsidiary GasNet from E.ON. The transaction is still subject to regulatory approval.

Gas Distribution manages a network of 4,600 kilometres of gas pipelines with a total of 111,000 customer sites. It has approximately 120 employees and distributed 2.8 terawatt hours of gas in 2024. The GasNet Group manages a network of 65,000 kilometers of pipelines, has more than 2,200 employees, serves about 2.2 million customer points and distributed over 59 terawatt hours of gas last year

"After the transaction is settled, we intend to gradually integrate Gas Distribution into the GasNet Group. In the years to come, gas will be a key medium for ensuring the Czech Republic's energy security in the supply of electricity and heat, and we are pleased to be able to rely on other experts to help us achieve our goals," said GasNet CEO Andrzej Martynek.

CEZ is one of the largest energy companies in the Czech Republic. The majority shareholder is the state, which, through the Finance Ministry, holds about 70 percent of the shares. In the first half of this year, the company saw its net profit fall by more than a fifth to Kc16.5bn. The decline exceeded even analysts' initial estimates, according to which the company's performance was affected mainly by high depreciation and taxes.

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