OMV/EconGas on cutbacks in Russian gas supplies: supply to Austria assured under the current conditions
OMV and its subsidiary company EconGas have been informed about reductions in the supply of Russian gas to Europe.
The severe winter in Russia with temperatures of up to minus 35 degrees has led to restrictions in the supply of natural gas from Russia. This also has repercussions for the transport of gas to Europe. At present, the Baumgarten gas turntable in Lower Austria is reporting a 30% reduction in deliveries.
OMV and its subsidiary companies are able to fully compensate for the current delivery cutbacks through their strong domestic production and reservoirs with a total capacity of 2.4 billion cubic meters. This means they will be able to maintain gas supplies to Austria even under the current weather conditions.
Christopher Veit, managing director of OMV Austria: “OMV is well prepared for the further course of this winter. Our strong domestic production and strategic gas reservoirs provide safeguards for Austria’s gas supply.”
OMV/EconGas are in constant contact with Gazprom/Gazprom export and will report on any further developments.
Background information:
Austrian gas consumption and import volumes:
Austria’s gas consumption is currently around 9 billion cubic meters a year. Around 47% of Austria’s gas supplies come from Russia, with 38% supplied by Norway and other countries. Around 15% comes from Austrian gas production. OMV’s domestic gas production is around 1.35 billion cubic meters a year, covering around 19% of the domestic gas requirement.
EconGas:
OMV, OMV Gas & Power, EVN, WIEN ENERGIE, EGBV and BEGAS have merged their trading and sales activities under EconGas. The core business is the direct sale of natural gas to distributors and business customers with an annual consumption from 500,000 cubic meters in Austria and Europe as well as the trading of gas on international trading platforms. EconGas is based in Austria, and also operates subsidiary companies in Germany, Italy and Hungary. EconGas is well prepared for the current cold weather: the natural gas reservoirs are full and already working at full throttle. More than half of the annual Austrian gas requirements can be stored in Austrian gas reservoirs in total. EconGas is by far the largest user of gas reservoir capacities in Austria.
OMV Gas & Power GmbH:
OMV Gas & Power GmbH is the main gas and electricity company of the OMV group and comprises four business units: Supply & Trading, Sales, Gas Logistics and Power Generation. The sustainable growth strategy of the business area has four lines of attack: the optimisation and expansion of the gas supply portfolio, the expansion of the logistics business, the ongoing strengthening and optimisation of gas trading and sales activities and the extension of the gas value chain through the entry into the electricity business. This means that all processes in the value chain – from exploration and production, transport, storage and marketing through to electricity production in gas-fired power plants – are integrated within the group.
In the Supply & Tading and Sales business units, OMV Gas & Power and EconGas sold 13.3 bcm and Petrom Gas sold 4.7 bcm of gas in 2010. The Central European Gas Hub developed into one of the most important gas hubs in Continental Europe in 2010, with a trading volume of around 34 bcm and the inclusion of a gas exchange in the service portfolio. In 2010, the marketed capacity in the area of Gas Logistics was around 89 bcm. The gas pipeline network of OMV not only ensures the supply of gas to Austria, but also the transport of gas to Germany, Italy, France, Slovenia, Croatia and Hungary. The leading role of OMV in the Nabucco Gas Pipeline should also further strengthen the security of gas supplies.