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.
What measures is OMV implementing to diversify its gas supply sources in light of the ongoing disputes with Gazprom?
**Interview with Alfred Stern, CEO of OMV**
**Interviewer:** Thank you, Alfred, for joining us today. Recent developments regarding OMV’s dispute with Gazprom have raised questions about the future of gas supplies in Europe. Can you elaborate on the situation with Gazprom and your recent arbitration award?
**Alfred Stern:** Thank you for having me. Yes, we recently received an arbitration ruling that awarded us €230 million due to irregular gas deliveries from Gazprom, which had serious implications for our operations, particularly after the complete cessation of supplies in Germany back in September 2022.
**Interviewer:** It’s concerning that this could lead to further interruptions in gas deliveries from Russia. How does OMV plan to handle a potential halt in gas supplies from Gazprom?
**Alfred Stern:** We’re well-prepared for this scenario. We’ve established alternative gas supplies from non-Russian sources, notably from Norway and through liquefied natural gas (LNG). Our gas storage facilities are over 90% full, which positions us to meet our customer commitments in the event of any interruptions in Gazprom’s supply [[1](https://www.bnnbloomberg.ca/investing/2024/11/13/omv-wins-230-million-award-from-gazprom-on-2022-gas-dispute/)].
**Interviewer:** That’s reassuring to hear. However, you mentioned OMV is still tied to long-term contracts with Gazprom. Can you explain the implications of this contract moving forward?
**Alfred Stern:** Certainly. While we’ve significantly reduced our reliance on Russian gas, we are still bound by long-term supply commitments. If Gazprom were to halt deliveries, it would present us with a legitimate opportunity to withdraw from these contracts, as any such cessation would breach our agreement. This would vary our options for sourcing gas going forward [[1](https://www.bnnbloomberg.ca/investing/2024/11/13/omv-wins-230-million-award-from-gazprom-on-2022-gas-dispute/)].
**Interviewer:** So, the future of OMV’s gas sourcing could evolve significantly, especially if further disruptions occur. How do you view the broader energy landscape in Europe in light of these tensions?
**Alfred Stern:** The energy landscape in Europe is indeed very dynamic, particularly after the 2022 energy crisis. We’re witnessing a shift towards diversification, with countries increasingly looking for alternative energy sources. OMV’s proactive steps to secure non-Russian gas align with this trend, and we prioritize making our operations resilient to market fluctuations and geopolitical challenges [[1](https://www.bnnbloomberg.ca/investing/2024/11/13/omv-wins-230-million-award-from-gazprom-on-2022-gas-dispute/)].
**Interviewer:** Thank you, Alfred. Your insights into OMV’s strategy and the broader energy context are invaluable as we navigate this complex situation.
**Alfred Stern:** Thank you for having me. It’s an important conversation as we collectively work towards a sustainable and secure energy future in Europe.
