Growth in Europe’s demand for Russian gas confirms importance of Nord Stream 2

RELEASE

A working meeting between Alexey Miller, Chairman of the Gazprom Management Committee, and Rainer Seele, Chairman of the Executive Board of OMV, took place in Moscow today.

The meeting participants addressed issues related to bilateral cooperation. It was highlighted that Austria continued to increase its gas imports from Russia. Specifically, Gazprom’s exports to Austria between April 1 and April 19, 2017, were 69.9 per cent higher than in the same period of 2016.

Alexey Miller (center) at working meeting with Rainer Seele, Chairman of Executive Board of OMV
Alexey Miller (center) at working meeting with Rainer Seele, Chairman of Executive Board of OMV

Alexey Miller (center)

Speaking about Europe’s growing demand for Russian gas in light of the region’s declining indigenous production, the heads of the companies once again stressed the importance of Nord Stream 2 for ensuring reliable gas supplies to European consumers.

The parties also discussed further steps under the Basic Agreement regarding the asset swap.

Working meeting between Alexey Miller and Rainer Seele, Chairman of Executive Board of OMV, in Moscow
Working meeting between Alexey Miller and Rainer Seele, Chairman of Executive Board of OMV, in Moscow

Rainer Seele and Alexey Miller

Growth in Europe’s demand for Russian gas confirms importance of Nord Stream 2
Growth in Europe’s demand for Russian gas confirms importance of Nord Stream 2

Nord Stream and Nord Stream 2 gas pipelines

Background

OMV is Gazprom’s main partner in Austria.

On December 14, 2016, Gazprom and OMV signed the Basic Agreement regarding the asset swap. According to the document, Gazprom will receive a 38.5 per cent stake in OMV Norge AS, a company focused on geological exploration and production in Norway. In exchange, OMV will obtain a 24.98 per cent stake in the project for developing Blocks 4 and 5 of the Achimov formations in the Urengoy oil, gas and condensate field.

Nord Stream 2 is the project for a transit-free export gas pipeline with the annual capacity of 55 billion cubic meters of gas running from Russia to Germany across the Baltic Sea.

Gazprom’s gas supplies to Austria grew by 37.9 per cent in 2016 compared to 2015. In the first quarter of 2017, Russian gas exports to Austria added 67.9 per cent against the same period of 2016.