From 2024, Russian gas will no longer flow via Ukraine to Austria. With this statement, the former OMV boss has reignited concerns about the security of the gas supply. E-Control is not very concerned about this and points out that pipeline capacities through Ukraine can also be booked in the short term. The government is also trying to calm down.
At the end of 2019, Russian state-owned gas company Gazprom signed a five-year contract with Ukraine for the transit of Russian natural gas. This will end on December 31, 2024. This pipeline will also supply Austria with Russian natural gas. Now Ukraine’s deputy energy minister has informed him that Ukraine will not renew the gas transit contract with Russia beyond 2024, Roiss told ORF.
“We have been preparing for this for a long time”
“We knew the contract was due to expire in 2024,” says Carola Millgramm, head of the gas department at the energy regulator E-Control. “We’ve been preparing for this to happen for a long time.” The pipeline has not been physically destroyed and Ukraine has always tried to maintain transit. Pipeline capacities could also be booked at short notice.
The war in Ukraine and the security of energy supply were also discussed at the summit of the European Political Community in Moldova. This is the top priority for Austria, Chancellor Karl Nehammer (ÖVP) said on Thursday. OMV is preparing for new gas volumes to continue replacing Russian gas. It is important to “keep your nerve”, Austria is on the right track, Nehammer explained.
Minister: OMV is popular
Minister of Economic Affairs Martin Kocher (ÖVP) sees OMV in particular as a much sought-after case. The gas supply contracts would be their entrepreneurial responsibility, but the government would of course be willing to help secure the supply. Although that is the case with gas for this winter anyway, because: “The storage facilities are full,” said the minister in the margins of a press conference.
According to OMV, it has prepared for scenarios of Russian gas supply disruption and has a diversified portfolio consisting of natural gas from its own production and natural gas from third parties.
Exit is being prepared
The Ministry of Energy of Leonore Gewessler (Greens) has once again emphasized how uncertain the gas supply from Russia is. “There may be defects in the line, the pipelines may be destroyed by acts of war,” it said in a written statement. However, the Ministry of Climate Protection has worked out extensive proposals with energy experts Gerhard Roiss and Walter Boltz (head of E-Control until 2016) for the phasing out of Russian natural gas.
Stricter storage obligations for suppliers, securing the associated transport capacity for non-Russian natural gas and a temporary state takeover of OMV’s gas-supplying subsidiary are planned, among other things. According to the Ministry of Gewessler, the supply in Austria is currently assured. The storage level of the domestic gas storage facilities is over 75 percent and deliveries are also unlimited. However, this situation can change quickly.
“Very disturbing”
On Thursday, criticism came from the opposition. SPÖ energy spokesman Alois Schroll does not believe the energy minister’s plan will be enough to gain independence from Russia by 2024. NEOS club president Beate Meinl-Reisinger described it in a broadcast as “unacceptable and a disgrace to our country” that in March 2023, 74 percent of gas supplies still came from Russia. On the other hand, Meinl-Reisinger finds the possible absence of Russian gas from late 2024 “extremely worrying for the domestic economy”.
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.
