UPDATE 1-Czechs extend gas supply deal with Gazprom

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RWE Transgas, the Czech unit of Germany's RWE , has extended a natural gas supply contract with Russia's Gazprom until 2035, the company said on Thursday.

Under the agreement, the Russian monopoly will supply 9 billion cubic metres of gas per year to the central European country, RWE Transgas said in a statement.

The companies also signed a deal covering gas transit through the Czech Republic into western Europe until 2035, it said.

"The contract renewal means that about one third of Russian gas will be supplied to Europe through the Czech Republic," the statement said.

Under a current deal, Transgas had guaranteed supplies for the Czech market until 2014, with volume rising from 8.5 bcm per year to 9 bcm in 2010.

RWE bought the former Czech monopoly Transgas and distributors for 4.1 billion euros in 2002, and took over long-term take-or-pay contracts with Gazprom.

RWE Transgas is the dominant Czech gas importer and distributor, accounting for well over 90 percent of the country's needs. It imports most of its gas from Russia, with the remainder coming from Norway.

[PRAGUE/Reuters/Finance.cz]