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 specific strategies is OMV implementing to diversify its gas supply sources beyond Russian gas?
**Interview with Alfred Stern, CEO of OMV**
**Interviewer:** Thank you for joining us today, Alfred. OMV recently won a €230 million award from Gazprom related to irregular gas deliveries. Can you explain how this award will impact OMV given the potential interruption of Russian gas supplies?
**Alfred Stern:** Thank you for having me. The situation is indeed complex. The awarded damages will offset some of our payment obligations to Gazprom, which could lead to interruptions in their gas deliveries. However, I want to reassure our customers that we are well-prepared for such an outcome. Our gas storage facilities are currently over 90% full, and we have established alternative supply routes, particularly through Norwegian gas and liquefied natural gas (LNG) [[1](https://www.bloomberg.com/news/articles/2024-11-13/omv-wins-230-million-award-from-gazprom-on-2022-gas-dispute)].
**Interviewer:** That’s reassuring. You mentioned that OMV is no longer dependent on Russian gas. What led to this strategic shift?
**Alfred Stern:** Over the past few years, we’ve significantly reduced our reliance on Russian gas. This decision is part of a larger strategy to diversify our supply sources and enhance our energy security. While we still have a long-term supply contract with Gazprom, we are actively working to diminish our purchases. If Gazprom does cease its deliveries, this would actually give us a chance to exit that long-term contract, which would be beneficial for OMV in the long run [[1](https://www.bloomberg.com/news/articles/2024-11-13/omv-wins-230-million-award-from-gazprom-on-2022-gas-dispute)].
**Interviewer:** Given the current geopolitical landscape and the ongoing tension regarding gas supplies, how do you foresee the upcoming months for OMV?
**Alfred Stern:** The upcoming months will certainly be challenging, especially as we navigate these potential supply interruptions. However, we are confident in our ability to deliver on our contractual obligations to customers. Our focus remains on maintaining stable supplies through our diversified sources and keeping gas prices competitive in the market [[1](https://www.bloomberg.com/news/articles/2024-11-13/omv-wins-230-million-award-from-gazprom-on-2022-gas-dispute)].
**Interviewer:** Thank you, Alfred, for sharing your insights and strategies. We appreciate you taking the time to discuss these crucial developments.
**Alfred Stern:** Thank you for having me. It’s important that we communicate our position clearly during these times, and I look forward to keeping everyone updated on our progress.
