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 its 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 is OMV planning to mitigate potential interruptions in gas supplies from Gazprom, given the ongoing disputes and geopolitical tensions?
**Interview with Alfred Stern, CEO of OMV**
**Host:** Welcome to our special segment on the evolving energy landscape in Europe. Joining us today is Alfred Stern, the CEO of OMV, Austria’s leading energy company. Alfred, thank you for being here.
**Alfred Stern:** Thank you for having me.
**Host:** Let’s dive right in. OMV recently announced its plans to offset claims against Gazprom Export in light of ongoing disputes. Can you explain how this might affect gas deliveries to Austria?
**Alfred Stern:** Certainly. The recent decision comes after ongoing issues with Gazprom’s irregular deliveries. We warned that this offset could lead to interruptions in Russian gas supplies. However, I want to emphasize that OMV is well-prepared for such scenarios, and our gas storage facilities are currently over 90 percent full, ensuring we can meet our contractual obligations to our customers even if Gazprom were to cease deliveries.
**Host:** That’s reassuring to hear. You’ve mentioned alternative sources for gas, particularly from Norway and liquefied natural gas (LNG). How significant are these sources for OMV’s strategy moving forward?
**Alfred Stern:** They are critical. We have strategically increased our capacity to import non-Russian gas. This diversification strengthens our supply chain and reduces our dependency on any single source, particularly in light of the geopolitical tensions we’ve seen in recent years. We’re prepared to deliver the gas volumes we’ve promised our customers, regardless of the status of Gazprom’s supplies.
**Host:** Speaking of dependency, you stated that OMV is no longer dependent on Russian gas. Can you elaborate on this transition?
**Alfred Stern:** Yes, indeed. Over the last few years, we have significantly reduced our reliance on Russian gas. While we still have a long-term supply contract with Gazprom that we can’t simply withdraw from at this point, the reduced volumes and the alternate supplies we’ve secured mean we’re less vulnerable. If Gazprom did stop its deliveries, it would provide us an opportunity to officially move beyond that contract.
**Host:** It sounds like OMV has a solid foundation for the future. What might the implications be if Gazprom were to fully halt supplies, especially given the historical context of interruptions since September 2022?
**Alfred Stern:** If Gazprom were to stop deliveries in response to our recent actions, we would face small one-off hedging losses. However, these would be outweighed by the damages we have been awarded from previous disputes. It’s a complex situation, but we believe we can navigate it effectively while keeping our commitments to our customers.
**Host:** Thank you, Alfred. Your insights into OMV’s strategies and the broader implications for European energy supply are invaluable. We look forward to seeing how this unfolds.
**Alfred Stern:** Thank you for having me. It’s vital that we continue to engage in discussions about energy diversification and security.
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This interview reflects the challenges and strategies concerning OMV’s relationship with Gazprom in the face of ongoing geopolitical tensions and energy supply concerns.