OMV AG has canceled a decades-lasting contract with Gazprom PJSC for the supply of pure gasoline to Austria over the Russian state-owned firm’s alleged failure to honor commitments.
OMV, by which the Austrian authorities holds a minority stake, assured it has sufficient gasoline to satisfy present obligations by way of different sources.
Final month oil and gasoline distributor OMV stated it had gained an arbitral award of damages in opposition to Gazprom over failures to ship gasoline.
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Earlier this 12 months German gasoline and energy utility Uniper SE additionally gained an analogous arbitration in opposition to Gazprom for non-delivery of gasoline, entitling Uniper to damages and the termination of gasoline contracts.
OMV’s termination of its contract with Gazprom was attributable to “a number of basic breaches of contractual obligations”, OMV stated in an announcement.
“Since November 16, 2024, Gazprom Export has halted gasoline deliveries to OMV”, added the assertion on OMV’s web site. “Prior, OMV acquired roughly 7,400 MWh per hour, similar to roughly 5 TWh per thirty days, on the Austrian Slovakian border”.
OMV chair and chief government Alfred Stern stated, “Due to the profitable efforts by our gasoline taskforce staff through the previous three years, OMV may be very properly positioned to attract on our diversified portfolio of other gasoline sources, safeguarding provide safety for our prospects”.
OMV has its personal manufacturing at house and in Norway. It has additionally secured provide from third events and ordered long-term volumes of liquefied pure gasoline, in response to the corporate.
“OMV is able to fulfill all of its buyer contracts from different gasoline sources”, it stated.
On November 13 OMV introduced it had gained an award from the Worldwide Chamber of Commerce amounting to EUR 230 million ($241.56 million) plus curiosity and prices in favor of OMV Gasoline Advertising & Buying and selling GmbH (OGMT) in opposition to Gazprom Export.
The ruling involved “Gazprom Export’s irregular German gasoline provides, which had ultimately led to September 2022”, OMV stated in a press launch then. It acknowledged that enforcement would possibly sore enterprise relations with Gazprom and lead to Gazprom halting provide.
On June 5, 2018, OMV introduced the extension of its contract with Gazprom to 2040. The contract, which began 2006, was to run out 2028.
The Austrian nationwide safety technique printed this 12 months confirmed the nation’s dedication to the European Union intention of ending imports of Russian fossil fuels by 2027. In Could 2022, a month after Russia invaded Ukraine, the 27-member bloc unveiled REPowerEU, a bundle of plans to section out Russian hydrocarbons.
On June 12 Uniper stated it had gained an arbitral award of over EUR 13 billion in damages in opposition to Gazprom.
On Could 21 OMV stated a court docket ruling in opposition to Gazprom gained by “a significant European power firm” would possibly require OMV as a purchaser of Russian gasoline to withhold funds meant for Gazprom and redirect these quantities as injury funds underneath the award. It didn’t title Uniper.
To contact the writer, electronic mail jov.onsat@rigzone.com
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