Although the Russian Gazprom Group is currently a long way from supplying the contractually agreed gas quantities, “in the current situation we are fully able to supply and store our customers”, emphasizes OMV CEO Alfred Stern. Not only the capacity of the pipeline has been secured for the coming gas year, but also the gas to fill these pipelines. Repairs to the Schwechat refinery are expected to be completed by October.
“In Germany, deliveries via Nord Stream 1 have been reduced to 20 percent. 40 percent of normal deliveries arrive in Austria,” Stern told APA. There are contractual mechanisms to compensate for fluctuations, “however, these regulations are more than exhausted.” Stern would not say whether there are contractual penalties for this case or that OMV plans to claim damages from Gazprom.
OMV covers a quarter of domestic storage capacity
The gas supply in Austria is assured, Stern emphasizes. “Since the summer demand is lower than the annual average, in the current situation we are fully able to supply and also store our customers.” OMV’s gas storage facilities, which make up about a quarter of the domestic capacity, are already more than 80 percent full.
“Can cover all delivery obligations”
OMV also produces its own natural gas in Austria, “that accounts for about seven percent of the gas requirement,” says Stern. In addition, for the next gas year (October to September) not only transport capacities from Germany and Italy of 40 terawatt hours (TWh) are assured, but also the associated gas quantities. “These 40 TWh are important because we can use them to cover all OMV supply commitments that we actually deliver today from Gazprom contracts.”
Profit doubled: ‘Of course I see the emotions’
In the first half of the year, OMV benefited strongly from the uncertainty and high oil and gas prices, which doubled sales and profits. “Of course I see the emotion around inflation and energy prices that we’re seeing right now,” Stern said. However, OMV operates in a cyclical environment. In the Corona year 2020, Brent oil prices were normally below 25 dollars and gas prices sometimes below 5 euros per megawatt hour, the OMV boss reminded.
Schwechat refinery fully operational by October at the latest
Repairs to the Schwechat refinery are expected to be completed by the end of September or October. The system is currently running at around 20 percent and fuel has also been bought on the market, which is now transported to Austria by rail, road and water. In addition, the government released fuel reserves in the short term. “We now see a stable supply situation with him.”
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
