Slovakia: Fico slowed by technical hurdles in gas swap deal with Azerbaijan

Slovak Prime Minister Robert Fico acknowledged on 20 March significant technical difficulties obstructing a proposed gas swap deal with Azerbaijan, while reaffirming the urgency of restoring Russian gas transit through Ukraine.

Partagez:

Prime Minister of the Slovak Republic Robert Fico stated on 20 March that ongoing negotiations with Azerbaijan concerning a gas swap agreement were facing multiple technical barriers. The operation aims to sustain gas transit via Ukraine by replacing Russian gas with equivalent volumes supplied from Azerbaijan. This proposal followed the suspension of gas flows through Ukraine on 1 January.

Constraints of the substitution mechanism

Speaking before the European Affairs Committee of the Slovak Parliament, Mr Fico noted that “all sorts of technical problems” were hampering the implementation of such a mechanism. He emphasised that talks with Baku were continuing, but the most stable route remained a return to conventional transit through Ukraine, under the framework of peace negotiations. He added that such a resolution would mitigate market speculation and logistical complications.

Mr Fico specified that gas imports in the region had seen a price increase estimated at 10% since the halt of Ukrainian transit. He attributed this rise to political decisions in the energy domain, arguing that they do not align with economic realities.

Criticism of European energy plans

The Slovak leader also criticised the European Commission’s roadmap to reduce energy dependence on Russia. According to him, Western Europe cannot operate without gas supply from the East. He warned that the administrative measures proposed to lower energy prices were unlikely to be effective, pointing to a persistent price gap between European and American gas.

Mr Fico linked his country’s support for further European Union sanctions against the Russian Federation to the condition that they do not undermine diplomatic prospects or Slovakia’s strategic energy interests. He stated that existing sanctions had little observable impact on daily life in Russia, while highlighting risks to Slovakia’s nuclear sector if restrictions were expanded.

Nuclear challenges and persistent dependencies

Slovakia generates nearly two-thirds of its electricity from nuclear energy, primarily through five VVER 440/213 reactors operated by the national utility Slovenské Elektrárne. These Soviet-designed reactors continue to rely on fuel supplied by Russia. The country also remains a net exporter of electricity to neighbouring nations, reinforcing the strategic value of its nuclear infrastructure.

Energy Transfer strengthens its partnership with Chevron by increasing their liquefied natural gas supply agreement by 50% from the upcoming Lake Charles LNG export terminal, strategically aiming for long-term supply security.
Woodside finalises the divestment of a 40% stake in the Louisiana LNG project to Stonepeak, injecting $5.7 billion to accelerate developments and optimise financial returns ahead of first gas delivery scheduled in 2026.
Keranic Industrial Gas seals a sixty-day exclusivity deal to buy Royal Helium’s key assets, raise CAD9.5mn ($7.0mn) and bring Alberta’s Steveville plant back online in under fifteen weeks.
The Irish-Portuguese company Fusion Fuel strengthens its footprint in the United Arab Emirates as subsidiary Al Shola Gas adds AED4.4 mn ($1.2 mn) in new engineering contracts, consolidating an already robust 2025 order book.
Cheniere Energy validates major investment to expand Corpus Christi terminal, adding two liquefaction units to increase its liquefied natural gas export capacity by 2029, responding to recent international agreements.
A study by the International Energy Agency reveals that global emissions from liquefied natural gas could be significantly reduced using current technologies.
Europe is injecting natural gas into underground storage facilities at a three-year high, even as reserves remain below historical averages, prompting maximized imports of liquefied natural gas (LNG).
South Korea abandons plans to lower electricity rates this summer, fearing disruptions in liquefied natural gas supply due to escalating geopolitical tensions in the Middle East, despite recent declines in fuel import costs.
Russia positions itself to supply liquefied natural gas to Mexico and considers expanded technological sharing in the energy sector, according to Russian Energy Minister Sergey Tsivilyov.
Nepal reveals a significant potential reserve of methane in the west of the country, following exploratory drilling conducted with technical support from China, opening new economic prospects.
Petronas formalizes a memorandum with JOGMEC to secure Japanese LNG deliveries, including a first cargo from LNG Canada scheduled for July at Toho Gas.
Belgrade is currently finalising a new gas contract with Russia, promising Europe's lowest tariff, according to Srbijagas General Director Dusan Bajatovic, despite Europe's aim to eliminate Russian imports by 2027.
TotalEnergies and QatarEnergy have won the Ahara exploration licence, marking a new stage in their partnership with SONATRACH on a vast area located between Berkine and Illizi.
After four years of interruption due to regional insecurity, TotalEnergies announces the upcoming resumption of its liquefied natural gas project in Mozambique, representing a $20bn investment.
The French group has acquired from PETRONAS stakes in several licences covering more than 100,000 km² off Malaysia and Indonesia, consolidating its Asian presence and its exposure to the liquefied natural gas market.
In response to rising summer electricity consumption, Egypt signs import agreements covering 290 shipments of liquefied natural gas, involving major international firms, with financial terms adjusted to the country’s economic constraints.
Egyptian fertilizer producers suspended their activities due to reduced imports of Israeli gas, following recent production halts at Israel's Leviathan and Karish gas fields after Israeli strikes in Iran.
A report identifies 130 gas power plant projects in Texas that could raise emissions to 115 million tonnes per year, despite analysts forecasting limited short-term realisation.
Japanese giant JERA will significantly increase its reliance on US liquefied natural gas through major new contracts, reaching 30% of its supplies within roughly ten years.
Sustained growth in U.S. liquefied natural gas exports is leading to significant price increases projected for 2025 and 2026, as supply struggles to keep pace with steadily rising demand, according to recent forecasts.