The Russian state-owned company Gazprom has stopped supplying gas to Austria, citing economic and legal disputes. Does this raise the risk of a gas shortage during winter, leaving people freezing?
Overnight, Russia abruptly ceased gas deliveries to Austria. At first glance, this seems dramatic, as previously, more than 80% of imported gas came from Gazprom.
However, the move wasn’t entirely unexpected, and Austria has been preparing for this scenario for a long time, Austrian Chancellor Karl Nehammer emphasized. Reassuring the public, he stated: “I can promise you, no one in Austria will freeze due to a gas shortage, and no home in Austria will be left cold.”
More than a year’s supply in storage
The disruption was anticipated. At the end of the year, the transit agreement for delivering Russian natural gas through Ukraine expires. By then, Austria would have needed to alter its supply methods regardless. As a result, gas supply companies had already begun sourcing from other suppliers.
Additionally, Austrian gas storage facilities are currently well-stocked, Chancellor Nehammer said: “Our storage facilities are currently 93% full. That’s 94.5 terawatt-hours of gas, or billions of cubic meters stored. This exceeds Austria’s annual gas needs.”
Part of the stored gas belongs to Germany
The regulatory agency E-Control also believes there will be no gas shortage. Its director, Alfons Haber, stated their projections indicate that “Austria’s gas supply is secured even in the event of a complete stop of Russian gas deliveries, and this security extends over two winters.”
However, part of the stored gas in the storage facilities does not belong to Austria, but to Germany. Despite this, energy expert Walter Boltz is confident that the remaining quantities will suffice to meet Austria’s needs for one to two winters.
Nonetheless, the premature cessation of Russian supplies will make gas more expensive, Boltz stated in an interview: “From a technical standpoint, the supply will function. We won’t face shortages. However, the price impact will be more pronounced in an unplanned situation compared to a carefully planned transition executed step by step.”
Reason for the supply halt – money
There has been no official statement from Moscow explaining the reasons behind the supply suspension. However, the underlying issue appears to be a legal dispute: Austria’s energy company OMV is engaged in a conflict with Russian energy giant Gazprom. An arbitration court of the International Chamber of Commerce ruled in OMV’s favor, awarding it 230 million euros. OMV has announced it will not pay for Russian gas until this amount is settled, N1 writes.
