OMV went public on Wednesday with an “urgent announcement”. Due to a ruling by a foreign court, payments to the Russian gas company Gazprom are now at risk of being confiscated. This in turn could lead to a supply stop.
OMV Gas Marketing & Trading GmbH (OGMT) learned of a court ruling obtained by a major European energy company against Gazprom, the statement said. OMV did not want to name the company, nor the court; the Austrian energy regulator E-Control and the Ministry of Energy in Vienna do not know the name of the company, as they explained at the APA’s request. The judgment concerns claims by the unnamed energy company against Gazprom, which could now be enforced.
Experts from the Ministry of Energy “review the developments”
In the event of forced enforcement, OMV considers it likely “that Gazprom Export will stop gas deliveries under the gas supply contract with OMV Gas Marketing & Trading GmbH and thus influence the Austrian gas market,” it says in the so-called “Urgent Market Notice”. This assessment is based on the behavior of Gazprom Export in similar situations.
“The experts of the Ministry of Climate Protection are currently examining the current developments in detail,” responsible minister Leonore Gewessler (Greens) said in a statement. “Deliveries to Austria are currently continuing without restrictions.” She called on Austrian suppliers to continue establishing supply relationships for non-Russian natural gas as soon as possible.
E-Control: Gas supply safe this coming winter
E-Control stated that the gas supply to the Austrian market would be safe this coming winter. The scenario of the failure of Russian gas supplies has already been included in the corresponding calculations of E-Control’s supply situation. The warehouses in Austria are already about 77 percent full and there are alternative import options via Germany and Italy.
However, in this context, the rising gas storage tax in Germany from July would further inflame the price situation. As reported, the controversial tax, which is being fought by the federal government in Vienna, will increase from 1.86 euros to 2.50 euros per megawatt hour.
OMV has a gas supply contract with Gazprom until 2040. OMV also purchases gas from its own production in Austria and Norway and from other producers. According to its own information, OMV has also concluded long-term LNG supply contracts, which are imported into Europe at the terminal in Rotterdam. In addition, as a potential buyer you participate in the auctions on the EU’s common gas purchasing platform and you also have the necessary transport capacities.
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.
