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.
### Interview with Alfred Stern, CEO of OMV
### Interview with Alfred Stern, CEO of OMV
**Interviewer:** Thank you for joining us today, Mr. Stern. OMV has recently won a significant arbitral award against Gazprom, amounting to $243 million. Can you explain how this ruling impacts OMV’s ongoing relationship with Gazprom and future gas supplies?
**Alfred Stern:** Thank you for having me. The arbitral award primarily addresses the irregularities in Gazprom’s gas deliveries, particularly the complete halt in supply to Germany we experienced in September 2022. While we acknowledge the complexities of our long-term contract with Gazprom, this ruling allows us to offset our financial claims against our payment obligations, which is a critical step in managing our risks moving forward.
**Interviewer:** You’ve mentioned the potential for interruptions in Russian gas deliveries as a result of this ruling. How is OMV preparing for such a scenario?
**Alfred Stern:** OMV is well-prepared for any possible interruption in supplies from Gazprom. Our gas storage facilities are currently over 90% full, and we have diversified our supply chain by securing alternative gas supplies from Norway and increasing our liquefied natural gas (LNG) capabilities. This ensures we can meet our contractual obligations to our customers, even in the event of reduced or halted deliveries from Russia.
**Interviewer:** How has OMV’s strategy changed with respect to dependence on Russian gas, particularly given the ongoing geopolitical tensions?
**Alfred Stern:** As I’ve stated previously, OMV has significantly reduced its reliance on Russian gas. We’re moving towards a more diversified energy portfolio. While we are still bound by our long-term supply contract, the situation presents an opportunity. If Gazprom were to cease deliveries, this would potentially allow us to exit the contract without penalties, as that would be a breach of agreement on their part.
**Interviewer:** What would you say to concerns from customers regarding the stability of their gas supply, especially in light of these developments?
**Alfred Stern:** I want to assure our customers that we are committed to providing reliable services and maintaining gas supply integrity. We have strategically positioned ourselves with ample storage and diversified sources, so we are confident in our ability to fulfill our contractual obligations regardless of the disruptions.
**Interviewer:** what does the future hold for OMV in terms of energy sourcing and supply?
**Alfred Stern:** Our goal is to transition towards a cleaner and diversified energy future. We are actively exploring more sustainable energy sources and technologies to ensure that OMV not only remains a key player in the gas sector but also adapts to the shifting energy landscape. Our recent developments with alternative gas supplies position us well for this evolution. Thank you for having me.
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This interview highlights the current situation surrounding OMV’s arbitration victory and its future strategies amid ongoing challenges with Gazprom and shifts in the energy market.
