Today in Prague Alexander Medvedev, Deputy Chairman of the Gazprom Management Committee and Karel Komarek, Chairman of the MND Group Board of Directors inked an Agreement on a new underground gas storage (UGS) facility construction in Damborice, South Moravia.

The UGS facility construction will start in 2014, the commissioning is scheduled for 2016. The working gas capacity of the UGS facility will total 448 million cubic meters, thus making it one of the largest facilities of its kind in the Czech Republic. The companies will invest around USD 128 million in equal shares into the UGS facility construction.

 “Investments into the UGS construction signify another step on the way to improving the quality of our cooperation. Raising the reliability of natural gas supplies to Europe is our long-term strategy and UGS capacities expansion is its essential element,” said Alexander Medvedev.

“Gazprom is our strategic partner. We highly appreciate the opportunity of creating a joint venture with one of the global energy majors. We see it as a kind of a reward for many years of professional performance in the oil and gas sector. In future we are planning new joint projects not only in the Czech Republic, but also in Europe and the Russian Federation,” said Karel Komarek.

Background

The MND Group, a member of the KKCG Investment Group, is the major oil and gas production company in the Czech Republic. The company is mainly focused on oil and gas exploration and production as well as construction and operation of UGS facilities. Besides the Czech Republic, the MND Group is represented in many European countries, in the Middle and Near East, North Africa and the CIS countries.