OMV wants to transfer the price risk to the federal government. Shopping for winter 2023/24 should start soon.
Austria has stored enough gas for this winter. But the supply must also be secured for the coming years. Since the purchase of the reserves has to start in the spring, a strategy is needed. The energy group OMV plays an important role with a market share of 45 percent in gas.
Ex-CEO: don’t put the risk with OMV
Because the financial risk is huge, explains former OMV boss and energy expert Gerhard Roiss: The state gas reserve for the current winter, for example, was bought for 200 euros per megawatt hour and cost four billion euros. “Meanwhile, the gas price has fallen and you would get this amount with 2.4 billion euros.” This risk should not be placed on OMV, the federal government should get involved. In the “Krone” interview, Roiss can imagine a “temporary” nationalization of the gas trading subsidiary.
OMV boss Alfred Stern would like to sell all this to the Republic and also the gas contracts with the Russians. It would also be possible for the state to accept liability alone. All of these proposals are currently being examined by the state-run ÖBAG. Because in the worst case, it would have to buy OMV’s gas company. Then the supply would de facto be in the hands of the state.
Sale of OMV parts not yet off the table
The Gazprom agreements, which tie Austria to the Russians until 2040, remain a “hot topic” that no one wants to talk about right now. Roiss suggests firing her. Aside from the looming legal battle, it would be unclear how the Russians would respond. Gas is still flowing from there, albeit less than agreed.
Meanwhile, the offer of a financial consortium (backed by a group led by OMV Vice Johann Pleininger) to buy large parts of OMV’s oil and gas business and in return guarantee the supply of 60 TWh of gas from Norway is being investigated. But the aversion to these plans is great at OMV and ÖBAG.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
