Pavel Balada, CEO of MET Czech Republic, highlights natural gas as a stable energy source during the energy transition. In this interview, he explains how MET Group leverages its international backing, diversified supplies and strong market position to help the Czech industry navigate the shift to more sustainable energy. Balada draws on a decade of experience within the Group.
Original article in Czech: Svět průmyslu
How specifically do you plan to support Czech industrial companies in transitioning from coal to gas, and what advantages can your expertise in LNG and diversified supplies offer them?
We recognize that the energy transformation is a process that will not be completed in one or two years. We are convinced that natural gas will be a crucial energy source for all of Europe much longer than people expect, and it will play a key role in the transition to modern, ecological, sustainable energy. It's a long-term journey and at MET Group, we have been preparing for it for a long time. Gradually, we have taken steps that now enable us to effectively help companies.
Our primary strength lies in our ability to diversify the sources of the gas we supply. In Europe, we are among the largest suppliers, currently delivering over 30 LNG shipments annually. Last year, we delivered two LNG vessels from the U.S. to a major Czech customer. At present, we can offer LNG from the U.S., where we signed a long-term 10-year LNG purchase agreement with Shell last year. A year earlier, we signed a memorandum with Commonwealth on a long-term 20-year agreement. Additionally, we are able to import LNG from Africa and Asia. Thanks to our contractual agreements, we are already capable of supplying significant volumes of LNG to Europe.
We import LNG to terminals in nine European countries – Germany, Belgium, the Netherlands, the United Kingdom, Greece, Italy, Croatia, Spain, and Finland. We have long-term reserved regasification capacities in Germany, Croatia, and Spain. Since 2023, we have been operating through a subsidiary in Singapore, which has opened the doors to the Asian market, enabling participation in global LNG trade. We have also signed an agreement to build our first LNG ship, scheduled for delivery in 2027, further increasing our ability to supply LNG to our customers from various sources.
With these conditions, long-term contracts and the benefits of the entire MET Group, we are able to ensure stable and secure gas supplies to any customers in the Czech Republic.
In the energy-intensive industrial sector, price stability is crucial. What tools and products do you offer to minimize the impact of energy price fluctuations on industrial companies?
Thanks to the robustness of the entire MET Group and its absolute financial stability, we are not hesitant to introduce new products. One such product is pricing linked to foreign indexes, which offers more attractive and stable long-term solutions for customers. We can also provide long-term contracts with longer fixed terms, which is not standard practice.
Furthermore, we aim to offer products whose prices are linked to manufacturing outputs (e.g., steel, ammonia) or PPAs connected to renewable energy sources. Lastly, we can ensure stability through our diversified portfolio. We rely not only on a single source but a broad spectrum, ranging from LNG to energy from solar and wind power plants.
What specific investments do you plan to make in the Czech Republic to develop infrastructure that would support supply stability for industrial enterprises – for example, gas storage facilities or cogeneration units?
We only recently entered the Czech market and are currently in the initial phase of our development, focusing on energy supplies for large industrial customers and wholesale. This segment primarily includes large energy-intensive industrial enterprises as well as other energy companies – independent suppliers, heat and electricity producers, etc. Once we grow, we plan to offer our services to smaller customers in the SME segment and households.
Similarly to other countries, if an attractive opportunity arises in our business areas that aligns with our strategy, we will evaluate it and proceed accordingly. However, at present, we are at the beginning of our activities in the Czech Republic, having acquired our first customers. We are open to investments in infrastructure that could contribute to further development of our group and the transformation of European energy. Still, it is too early to discuss specific investment opportunities in the Czech Republic at this stage.
Industrial companies are increasingly seeking ways to reduce their carbon footprint. What solutions in the field of flexible and renewable energy sources do you plan to offer to help industry meet decarbonization goals?
We are convinced that LNG will continue to play a key role in ensuring energy supply during the energy transformation of the European economy. It represents the fossil fuel with the lowest carbon footprint. In the field of LNG, we have long-term offerings for our customers and can support them in the energy transition.
As for renewable sources, MET Group is very active in Europe in transitioning to green energy. We have our own division dedicated solely to this area. In the past four years alone, 70% of our capital investments have been directed toward green energy projects.
These are assets that support grid flexibility, such as a recent acquisition in France, where we purchased Comax France. This company is the owner, operator, and developer of combined heat and power (CHP) systems and battery energy storage systems (BESS). Additionally, we own and operate onshore wind and solar power plants with combined capacity of 414 MW.
Are you considering collaborating with Czech industrial companies in developing innovative energy solutions, for example, in the field of cogeneration, hydrogen technologies, or energy storage?
One of our advantages, and also a goal we have set ourselves, is to explore opportunities for collaboration in cogeneration, investments, and management of medium-scale CCGT, as well as investments in renewable resources. If an interesting opportunity arises in line with our corporate strategy, we are open to discussions. However, it is still early days for us, as we have only recently entered the market.
How do you ensure the continuity and security of energy supplies in the event of unexpected crisis situations that could threaten the operations of energy-intensive industrial companies?
We are an independent Swiss company, ranking among the 25 largest Swiss companies by turnover (€24.5 billion in 2023). Last year, we managed to trade the gas consumption of the entire Czech Republic within three weeks. I mention this to demonstrate that we truly have sufficient capacities and resources to ensure stable supplies at any time.
Over the past three years, we have been working intensively on a comprehensive solution to ensure stability of supply for our customers at any time. The key to this is securing diversified sources and long-term contracts. It's not just about finding the sources themselves but also about ensuring access to them and the ability to distribute them further. We have succeeded in this and continue to work on expanding our portfolio.
Another important point is financial stability and the ability to offer innovative products, which I have already mentioned. It is also crucial that MET Group is a management-majority-owned group, which gives us a huge ability to address everything very flexibly and, in effect, immediately. When one of our customers faces a current issue, we can find a solution very quickly and reliably.
Pavel Balada is the CEO of MET Czech Republic. He has been with MET Group for ten years. Prior to that, he worked at KPMG. He first joined MET Group at its Swiss headquarters in Baar, near Zurich. He focused on mergers and acquisitions projects as well as business development, particularly in the area of expansion into new countries. Before taking on the task of developing MET's business activities in the Czech Republic, he gained valuable international experience. He contributed to establishing MET subsidiaries in Spain and Italy, which are now very successful. He then managed the expansion into the German market and was involved in founding a branch in Frankfurt am Main. Later, he served as the executive director and crisis manager for the MET subsidiary in Istanbul, Turkey.