The largest Slovak gas company Slovensky plynarensky priemysel, or SPP, said Wednesday it had signed contracts for natural gas supplies for 2009-2028 with giant Russian gas producer OAO Gazprom (GAZP.RS).
Under the new contracts, the state-run SPP will buy about 130 billion cubic meters of gas from Gazprom in the next 20 years.
"This is an important milestone for both sides and we are convinced that we have reached a fair commercial compromise," Gazprom Chief Executive Alexander Medvedev said in a press release without disclosing the value of the deal.
At the same time, SPP's gas transit unit Eustream, which transports 70-80 million cubic meters of gas through Slovakia to western Europe annually, has signed a deal to transmit roughly 1 trillion cubic meters.
"The conclusion of a new transit agreement for the next twenty years will further increase the E.U.'s energy security and guarantee the stable supply of Russian gas to Europe," Medvedev added.
The E.U., of which Slovakia is a member, is now seeking ways to secure gas supplies while bypassing Russia because of security concerns fueled by the recent conflict between Russia and Georgia.
Slovakia, which depends solely on Russia for its natural gas supplies, had to cope with lower supplies in 2006, when Gazprom cut gas volumes sent to Ukraine, lying between Slovakia and Russia, by 30% in a row over prices.