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.
What steps is OMV taking to ensure stability in gas supply while navigating the ongoing dispute with Gazprom?
**Interview with Alfred Stern, CEO of OMV**
**Interviewer:** Good morning, Mr. Stern. Thank you for joining us today. Recently, OMV announced that it may face potential interruptions in Russian gas deliveries due to a dispute involving compensation. Can you explain the situation and how it affects OMV’s operations?
**Alfred Stern:** Good morning, and thank you for having me. Indeed, the ongoing situation with Gazprom Export revolves around our claims for compensation due to irregular gas deliveries and a complete cessation in September 2022. We’re now offsetting this claim against our payment obligations, which could lead to some disruptions. However, I want to emphasize that OMV is well-prepared for this scenario[[1](https://finance.yahoo.com/news/omv-says-russian-gas-may-073304849.html)].
**Interviewer:** What measures has OMV put in place to mitigate the impact of a potential supply interruption?
**Alfred Stern:** We have proactively established alternative gas supplies, notably from Norway and increased our liquefied natural gas (LNG) capabilities. Our storage facilities are currently over 90% full, which gives us a significant buffer to ensure our customers receive the contractually guaranteed gas volumes[[1](https://finance.yahoo.com/news/omv-says-russian-gas-may-073304849.html)].
**Interviewer:** You mentioned that even if Gazprom halts deliveries, OMV is not entirely dependent on Russian gas anymore. How has your purchasing strategy evolved over the past few years?
**Alfred Stern:** We’ve significantly reduced our reliance on Russian gas for some time now. While we still cannot fully exit our long-term supply contract, the current circumstances present an opportunity. If Gazprom ceases deliveries, we could formally withdraw from that contract due to breach, allowing us to eliminate Russian gas from our supply chain altogether[[1](https://finance.yahoo.com/news/omv-says-russian-gas-may-073304849.html)].
**Interviewer:** That sounds like a strategic shift. What are the broader implications for the European gas market if OMV and Gazprom’s relationship deteriorates further?
**Alfred Stern:** A further strain on our relationship could lead to increased instability in the European gas market, especially concerning pricing and supply reliability. However, this situation also enhances the importance of diversifying energy sources within the EU, pushing us towards more sustainable and locally sourced energy solutions[[1](https://finance.yahoo.com/news/omv-says-russian-gas-may-073304849.html)].
**Interviewer:** Thank you, Mr. Stern, for your insights on this critical issue. We appreciate the transparency and proactive measures OMV is taking.
**Alfred Stern:** Thank you for the opportunity to discuss these important topics. We’re committed to ensuring a stable and secure energy supply for our customers moving forward.