The claim will now be offset against OMV‘s payment obligations to Gazprom Export from the Austrian supply contract, the Austrian company announced in the evening. This could lead to an interruption of Russian gas deliveries, warns OMV, but feels well prepared for this.
Memory 90 percent full
OMV has now set up alternative gas supplies from non-Russian gas as well as additional gas delivery capacities. Especially with gas from Norway and liquefied natural gas (LNG). “OMV confirms that the company can supply its customers with the contractually guaranteed gas volumes even in the event of a possible interruption in Gazprom Export’s supply,” the statement said. The OMV gas storage facilities are currently over 90 percent full.
This dispute concerned irregular deliveries from Gazprom Export and the complete cessation of deliveries in Germany in September 2022. The awarded damages will make a positive contribution to compensating for the financial damage incurred in 2022, OMV said today. If Gazprom were to stop deliveries in response to the settlement of the damages, OMV would incur small one-off hedging losses, which, however, would be “clearly outweighed” by the damages awarded. Gas deliveries of 5 TWh per month are potentially affected.
No longer dependent on Russian gas
OMV boss Alfred Stern had already said in July that OMV was no longer dependent on Russian gas. OMV has already significantly reduced its purchase of Russian gas. However, OMV says it cannot withdraw from the long-term supply contract, which obliges it to purchase gas from Russia in any case. If Gazprom were to stop deliveries, this would be an opportunity for OMV to stop purchasing Russian gas. Even if, as Ukraine threatened, no more Russian gas flows through Ukraine from the turn of the year, Russia would be in breach of contract and OMV could withdraw from the now unpopular long-term supply contract. The scenario that gas from Russia will no longer come to Austria has now lost its horror.
How has OMV’s strategy evolved in response to the recent cessation of gas deliveries from Gazprom, and what measures are being taken to ensure energy security for Austria?
**Interview with Alfred Stern, CEO of OMV**
**Interviewer:** Thank you for joining us today, Alfred. Recent developments have marked a significant shift in OMV’s relationship with Gazprom. Can you explain the circumstances surrounding the recent offset of payment obligations against your contract with Gazprom Export?
**Alfred Stern:** Certainly. Our decision to offset the claim against Gazprom stems from ongoing issues with irregular deliveries and the complete cessation of gas flows to Germany back in September 2022. By doing this, we are not only addressing financial damages incurred due to these irregularities but also reinforcing our commitment to our customers by ensuring we can maintain our gas supply even if Gazprom stops deliveries.
**Interviewer:** You mentioned that this situation could potentially lead to an interruption of Russian gas deliveries. How prepared is OMV for such a scenario?
**Alfred Stern:** We feel well-prepared for any potential disruptions. As of now, our gas storage facilities are over 90% full, and we have successfully established alternative supply routes primarily through non-Russian sources, such as gas from Norway and liquefied natural gas (LNG). This diversification strategy allows us to uphold our contractually guaranteed gas volumes for our clients.
**Interviewer:** You also indicated that OMV is no longer dependent on Russian gas. Can you elaborate on this transition and how it highlights your current strategy?
**Alfred Stern:** Absolutely. Over the past few years, we have been actively reducing our reliance on Russian gas. While we are still bound by a long-term supply contract, if Gazprom were to cease deliveries, it would provide us with an opportunity to exit this contract without facing penalties since such action would constitute a breach of contract on their part. Our objective is to move towards a more secure and diversified portfolio of energy sources.
**Interviewer:** With the ongoing geopolitical tensions and the evolving energy landscape in Europe, what is your outlook for the future of gas supply in Austria and Europe more broadly?
**Alfred Stern:** The current landscape requires agility and foresight in energy supply management. We anticipate that the shift away from Russian energy sources will continue, and Europe will increasingly rely on alternative suppliers and renewables. Our proactive adjustments at OMV place us in a strong position to adapt to these changes, ensuring that we can meet our customers’ needs without disruption.
**Interviewer:** Thank you, Alfred. It seems that OMV is navigating these challenges with a clear strategy.
**Alfred Stern:** Thank you for having me. We remain committed to delivering stable and reliable energy in these uncertain times.