Gazprom and Austria’s OMV extending contract for Russian gas supplies until 2040
Alexey Miller, Chairman of the Gazprom Management Committee, and Rainer Seele, Chairman of the Executive Board of OMV, today signed in Vienna an Agreement to extend until 2040 the existing contract between Gazprom Export and OMV Gas Marketing & Trading GmbH for Russian gas supplies to Austria. The contract was valid until 2028.
The document was signed in the presence of Vladimir Putin, President of the Russian Federation, and Sebastian Kurz, Federal Chancellor of Austria, as part of the celebrations marking 50 years of supplies of Russian gas to Austria.
Foreground: Alexey Miller and Rainer Seele at signing ceremony. Background: Vladimir Putin and Sebastian Kurz. Photo by OMV
“The Agreement signed today is yet another testament to the growing need for gas imports both in Austria and Europe in general – the need that Gazprom is ready to satisfy. By implementing the construction project for the Nord Stream 2 gas pipeline, we will make gas deliveries even more reliable for the benefit of consumers,” said Alexey Miller.
“By 2030, the European Union will have to import more than 80 per cent of the needed natural gas. By extending this gas supply contract, we will provide Austria and other European countries with natural gas despite the increase in demand. Moreover, it will allow us to reduce CO2 emissions,” said Rainer Seele.
Gazprom’s visit to Vienna also included working meetings of Alexey Miller with Elisabeth Koestinger, Austrian Minister for Sustainability and Tourism, and Margarete Schramboeck, Minister for Digital and Economic Affairs.
The gas cooperation became the overarching theme of the meetings, as the parties discussed the importance of natural gas – the cleanest fossil fuel – in Austria’s energy mix, of which it accounted for about 23 per cent.
It was noted that Gazprom had established itself as a reliable gas exporter attuned to the needs of the Austrian market and always ready to meet the rapidly growing consumer demand for natural gas.
Special emphasis was placed on the Nord Stream 2 project. The participants in the meetings pointed out that the efforts to build new gas transmission capacities, such as a new gas pipeline stretching across the Baltic Sea, took on great significance amid the decline in indigenous production in Europe.
OMV AG is Gazprom’s main partner in Austria. The companies cooperate in gas production, transportation and supplies.
June 1, 2018, marked the 50th anniversary of Russian gas supplies to the Republic of Austria. On June 1, 1968, the Soviet company Soyuznefteexport and Osterreichische Mineralolverwaltung (OMV) signed a gas supply agreement. The Republic of Austria became the first country in Western Europe to sign a gas contract with the Soviet Union.
In 2017, Gazprom set an absolute record for gas exports to Austria at 9.1 billion cubic meters, a rise of 50.3 per cent (3 billion cubic meters) from 2016 (6.1 billion cubic meters) and 33.7 per cent (2.3 billion cubic meters) from 2005, when the previous record had been reached (6.8 billion cubic meters), with over 218 billion cubic meters delivered to the country since 1968.
Nord Stream 2 is the construction project for a gas pipeline with the annual capacity of 55 billion cubic meters from Russia to Germany across the Baltic Sea.