The Austrian oil and gas group OMV has announced the termination of its long-term gas supply contract with Gazprom Export with immediate effect, citing multiple fundamental breaches of contractual obligations by Gazprom Export. The gas supply contract was signed in 2006 to import 7 bcm/year of gas from Russia from 2006 to 2027, with 3/4 of which for OMV GAS and 1/4 for Gazprom Austria (GPA). In 2018, an agreement was signed to extend the supply to 6 bcm/ year until 2040 and OMV imported about 60 TWh/year (around 6 bcm/year) until mid-November 2024.
In September 2022, Gazprom Export decided to cease natural gas exports to Germany under a contract with OMV. An International Chamber of Commerce tribunal awarded OMV €230mn plus interest and costs for damages related to Gazprom Export’s decision, prompting Gazprom Export to indefinitely suspend gas deliveries to Austria as of mid-November 2024.
To diversify its supply portfolio in the context of strained relations with Russia, OMV signed a 1.2 bcm/year gas supply agreement over 2023-2028 with Equinor in September 2023.