Austria's OMV wins arbitration award against Gazprom
Austrian integrated energy company OMV said November 13 it had been awarded €230mn ($243mn) by an International Chamber of Commerce tribunal for damages related to Gazprom Export’s decision in September 2022 to cease natural gas exports to Germany under a contract with OMV.
OMV Gas Marketing & Trading (OGMT) initiated the request for arbitration in January 2023.
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OMV has elected to immediately begin recovering the awarded damages from Gazprom Export by offsetting its claims against its existing contract with Gazprom for gas supply to Austria.
“It is expected that there may be a deterioration of the contractual relationship under the Austrian supply contract of OGMT with Gazprom Export, including a potential halt of gas supply,” OMV said in a release. “In such case, small one-time hedging losses could occur but would be clearly outweighed by the positive effects from the recovered damages.”
OMV said it had built new natural gas supply chains using non-Russian sources and additional pipeline access. Its portfolio encompasses several supply sources from Norway and additional long-term LNG contracts.
It says it can deliver full contracted gas volumes to its customers should the Austrian supply contract be terminated by Gazprom Export and that its storage facilities in Austria are currently more than 90% full. Potentially affected volumes at the Austrian Virtual Trading Point are estimated at up to 7,400 MWh/hour, or about 5 TWh/month.