Slovenský plynárenský priemysel (SPP), with nearly 1.5 million customers, is the largest energy supplier in Slovakia. However, its portfolio is not limited to gas alone. We spoke with SPP CEO Martin Húska about these additional areas, but above all about the necessity of diversifying natural gas supply sources.
According to an EU decision, imports of Russian gas are to be banned for all member states from 2027. However, SPP has a supply contract with Gazprom until 2034. What does this contradiction mean for SPP – and for Slovakia? What steps can you take?
At SPP, we have a diversified portfolio of natural gas supplies from major international suppliers, drawing on their global portfolios. Already last year, we confirmed that we are not dependent on a single source, with flows diversified through contracts with various suppliers. In 2025, Russian gas accounted for approximately 33% of our total supply, while the majority – 67% – came from our diversified portfolio. Slovakia is also connected by gas pipelines to all neighboring countries, and these connections are bidirectional, meaning gas can flow both into and out of Slovakia. We are therefore not dependent on a single transit route. This is evident from the fact that while in 2024 we imported most gas via the route through Ukraine, in 2025, after transit from that direction was halted, we made roughly equal use of routes through Hungary, Czechia, and Austria. The diversification of our gas procurement sources continues. We are currently negotiating supplies for Slovakia from the fourth quarter of 2027, when the REPowerEU regulation comes into force, with around thirty suppliers and producers. The outcome of these negotiations will determine the structure of our gas supply from that point onward. According to REPowerEU legislation, supplies of Russian natural gas will be banned from the fourth quarter of 2027.
In your view, can Europe truly function 100% without Russian gas? And if so, will it be at comparable prices?
From a European perspective, removing one source from supply is not diversification – quite the opposite. We see it as creating dependence on another source, in this case liquefied natural gas (LNG), which is a globally traded commodity. Producers will maintain its price at levels that suit them. Therefore, we cannot expect gas prices to fall in the future – rather the opposite. In addition, global natural gas production is currently operating at maximum capacity. While Europe is unlikely to face a shortage in terms of volume, geopolitical developments such as those we are currently witnessing in the Middle East will bring price shocks. In the past, when gas from Russian sources flowed to Europe, similar events had only a minimal impact on prices.
What level did Russian gas supplies remain at after transit through Ukraine ended? And how did you compensate for the shortfall?
As I mentioned, in 2025 Russian gas accounted for approximately 33% of our total supply, while the majority came from our diversified portfolio. For 2026, in line with the new REPowerEU legislation that came into force in the second half of March, we signed an amendment with Gazprom Export adjusting the terms of gas supply to Slovakia so that they comply with the new regulation. This year, deliveries from the Russian Federation will still allow us to cover most of our needs. We therefore continue to guarantee uninterrupted gas supplies to all our customers, from households to large industrial clients.
Gas is typically purchased well in advance, so current fluctuations should not immediately affect end consumers. But how should we assess the situation going forward? Could there be a scenario where storage facilities are not sufficiently filled before the next winter, leading to rising prices? When and for how long do you conclude contracts?
In the past, gas purchase contracts were concluded for longer periods, typically at least ten years. Our contract with Gazprom Export, for example, was signed for twenty years. This was due to the need for producers to ensure cost coverage. With the emergence of large gas hubs, the situation has changed, and gas is now traded over shorter periods – daily, monthly, quarterly, or annually. This is reflected in the available products, each with its own pricing. As for storage, under normal conditions it is used to cover winter demand peaks. In recent years, however, gas stored in underground facilities has become a key pillar of supply security. Gas is withdrawn in winter and injected during summer. To ensure supply security, we contracted more than 17 TWh of gas for the past two winter seasons, and our storage was filled to 100% at the start of winter. A risk during the summer injection season is the minimal price difference between winter and summer gas, which has persisted for most of last year and continues today. This so-called negative spread means that suppliers in Europe lack a business incentive to inject gas into storage, as it would result in losses. As a result, Europe may face lower storage levels in the winter of 2026–2027.
Given current developments, the need to diversify energy sources is often emphasized. How are you positioned in this area?
That is absolutely true, and we have already made significant progress. We have a diversified supplier portfolio and are continuing in that direction. We are currently preparing for the ban on Russian gas imports from the fourth quarter of 2027 and are therefore continuously negotiating with around thirty suppliers and producers.
SPP is fully owned by the Slovak Republic. It is often said that private companies are more flexible and agile than state-owned ones. Does this apply here, or is state ownership an advantage?
SPP is a joint-stock company operating in a liberalized energy supply market in Slovakia. We compete with dozens of gas and electricity suppliers for customers. If we did not act flexibly, dynamically, and in line with market principles, we would not survive. The fact that, fifteen years after market liberalization, we still hold more than a 60% share in gas supply and around a 12% share in electricity supply, and that our brand is successfully operating in the Czech Republic, I consider a success.
Beyond energy supply, you are active in other business areas. Which are the most significant?
SPP is an energy supplier, so we primarily offer services that our customers expect. Many of our clients already have ambitious decarbonization commitments and increasingly request renewable energy supplies in tenders. This applies to a large part of Slovak industry, which is tied to a significant number of jobs. To meet this demand, we plan to invest – either independently or in partnership – in multiple renewable energy projects. We are focusing on a range of sources. Photovoltaics currently represent the most accessible and fastest-deployable source of clean renewable energy. Another area where we are very active is wind power, whose potential in Slovakia remains largely untapped. Together with our partners, we are also preparing projects for renewable gas production. At the same time, in cooperation with our subsidiary ESCO Slovensko, we are working on projects to improve energy efficiency. We are also developing electromobility projects, so as you can see, our activities are quite diverse.
Foundation
SPP has operated its foundation for two decades. Are there any projects it is particularly proud of? “Every year, we invest hundreds of thousands of euros in public-benefit activities. For us, the key is not only the amount of support, but above all its real impact on people and communities across Slovakia,” says Martin Húska. “Personally, I am especially proud of the grant program SPPravme to pre naše deti, which focuses on supporting children’s mental health. It is a topic that deserves far more attention than it has received so far, and I am glad we can be part of a positive change. I also consider it exceptional that, as one of the few foundations, we systematically support not only organizations but also individuals with disabilities who need help in difficult life situations. At the same time, we have long been helping to develop communities and regions, because we believe that a strong Slovakia is built from the ground up – through local initiatives and active people.”
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