(Montel) Austrian energy company OMV has warned that its supply of Russian gas could end earlier than expected after an arbitration award forcing Gazprom Export to pay it EUR 230m in compensation.
In January 2023, OMV's marketing and trading division, OGMT, contacted the International Chamber of Commerce (ICC) to obtain compensation for losses suffered due to irregular deliveries from Gazprom Export to Germany, which were completely stopped in September 2022.
OMV declared on Wednesday that “the application of the request for compensation [aurait] possibly a negative impact on contractual relations under the Austrian supply contract between OGMT and Gazprom Export, including a potential cessation of gas deliveries.”
The Austrian energy company intends to immediately deduct the repairs due from its future payments to Gazprom under the supply contract still in progress, he added.
Gazprom's gas deliveries to Europe have plummeted following Russia's invasion of Ukraine and Western sanctions against Moscow.
OMV still receives around 5 TWh/month of Russian gas through Ukraine. However, the gas transit contract expires at the end of the year and the Austrian company fears that the arbitration decision could lead Gazprom to end its deliveries to OMV even earlier.
In this case, OMV could suffer “one-off and minor coverage losses” which would, however, probably be largely offset by the “positive effects of the compensation granted,” the company said.
In the event of an interruption in Russian supplies, OMV assures that it will be able to continue to supply its customers and obtain the necessary gas from other sources.
For her part, the Ukrainian Deputy Prime Minister affirmed on Wednesday that the expiration of the transit contract would not have a significant impact on Europe's energy security.
The head of the Austrian energy regulator recently told Montel that stopping Russian deliveries could lead to higher prices in the short term.
