A north-south pipeline to connect a liquid natural gas (LNG) sea terminal in Poland with the Czech Republic and Slovakia has been labeled a priority energy project agreed by the EU’s energy ministers. The Czech Energy Regulatory Office, however, says the project may not be viable and even says it’s possible the projected LNG terminal in Poland will not be completed.      

Just before midday on Tuesday in Lubmin on Germany’s Baltic Sea coast, German Chancellor Angela Merkel and Russian President Dmitry Medvedev made a symbolic turn of a large tap to launch commercial operation of the first of two lines of the Nord Stream — the world’s longest submarine gas pipeline. The dynamics of the European gas market will never be the same. 

There are countless reasons why Europeans concerns Gaz de France Suez and Germany’s E.ON Rurhgas would look to sell their stake in Slovak gas monopoly Slovenský plynárenský priemysel (SPP). But there is only one logical explanation for why Czech energy giant Energetický a Průmyslový Holding (EPH) — in which billionaires Petr Kellner of PPF and Daniel Křetínský of J&T have control — would look to buy it. The answer lies in Mother Russia.

Czech billionaire Petr Kellner’s energy holding EPH is still relatively small, but that could all change within a couple of months. His joint venture with Daniel Křetínský and the J&T Group is planning its largest acquisition yet: The firm wants to buy Slovak Gas Holding which holds a 49 percent stake and managerial control of the Slovak gas monopoly SPP. The deal should be completed in the spring of 2012. The question remains as to why EPH wants the Slovak gas company.