OMV Announced Termination of Gazprom Natural Gas Contract

SEATTLE (Oil Monster): The long-term natural gas supply agreement between Russia's Gazprom Export and Austria-based oil and gas giant OMV has been terminated with immediate effect. The decision comes after the supplier committed several serious violations of the terms of the contract.

The contract was first signed in 2006 and is scheduled to end in 2040, according to the statement released by OMV. Since mid-November of this year, the contract has been disrupted due to Gazprom Export's decision to stop delivering gas to OMV. OMV received about 7,400 megawatt-hours (MWh) of gas prior to the outage, or about 5 terawatt-hours (TWh) every month.

Meanwhile, OMV CEO Alfred Stern reaffirmed the company's dedication to providing all of its clients with dependable supplies. Over the past three years, the firm has prioritized diversification of its gas supply sources and extra pipeline capabilities, allowing it to safeguard supply security to its valuable customers. The company’s gas storage in Austria is currently at around 85%, Stern added.

OMV no longer operates a business in Russia or has any supply agreements with Gazprom Export.