OMV terminates gas supply contract with Gazprom Export

Austrian integrated energy company OMV said December 11 it had terminated its long-standing natural gas supply contract with Gazprom Export, citing “multiple fundamental breaches of contractual obligations” by the Russian firm.

The contract termination brings to an end a dispute between the two parties stemming from Gazprom Export’s decision in September 2022 to halt natural gas exports to Germany under a contract with OMV.

The Austrian company subsequently sued Gazprom Export, and in November 2024 was awarded €230mn by an International Chamber of Commerce tribunal.

OMV said it would offset the award against its Austrian supply contract with Gazprom Export, prompting the Russian firm just days later to cut off supplies to OMV under that supply contract, which had been in effect since 2006 and carried a term to 2040. The contract had provided OMV with about 7,400 MWh/hour of natural gas – some 5 TWh/month – at the Austrian-Slovakian.

Since Russia’s invasion of Ukraine, OMV has developed multiple new gas supply sources against the day when Russian piped gas would no longer be available due to sanctions, or in this case, contractual disputes.

“It is OMV’s key priority to always be a reliable supplier to our customers in any markets and countries we operate in,” OMV CEO Alfred Stern said. “Being fully cognizant of this profound responsibility, we have continuously implemented our diversification strategy for gas supply sources and additional pipeline capacities. Thanks to the successful efforts by our gas taskforce team during the past three years, OMV is very well positioned to draw on our diversified portfolio of alternative gas sources, safeguarding supply security for our customers.” 

OMV’s supply portfolio now includes its own gas production in Norway and Austria, supply from third-party producers and additional long-term LNG volumes.