Public Joint Stock Gazprom : Year-to-date gas exports to Austria exceed record supplies of 2018

November 22, 2019, 16:30

A working meeting betweenAlexey Miller, Chairman of the Gazprom Management Committee, and Rainer Seele, Chairman of the Executive Board of OMV, took place in St. Petersburg today.

The parties discussed the topical issues of cooperation, highlighting in particular the growth of gas supplies to Austria, which has continued for the fifth year in a row. According to provisional data, from January 1 to November 21, 2019, Gazprom delivered to the country 12.7 billion cubic meters of gas, which was 2.8 per cent more than in the entire year of 2018, a record-breaking year in terms of Gazprom's exports to Austria. The increase from the same period of the previous year made up 33.5 per cent (3.2 billion cubic meters).

Special attention was paid to the implementation of theNord Stream 2project.

Furthermore, potential cooperation in the LNG segment under the Memorandum of Understanding signed in June 2019 was also discussed at the meeting.

BackgroundOMV AG is Gazprom's main partner in Austria. The companies cooperate in gas production, transportation and supplies.

In 2018, Gazprom supplied to Austria 12.3 billion cubic meters of gas, an increase of 34.8 per cent (3.2 billion cubic meters) from 2017 (9.1 billion cubic meters).

In June 2018, an Agreement wassignedto extend until 2040 the existing contract betweenGazprom Exportand OMV Gas Marketing & Trading GmbH for Russian gas supplies to Austria.

In June 2019, Gazprom and OMVenteredinto the Memorandum of Understanding on cooperation in the LNG sector.

Nord Stream 2 is the construction project for a gas pipeline with the annual capacity of 55 billion cubic meters from Russia to Germany across the Baltic Sea. In 2017, Nord Stream 2 AG signed agreements with ENGIE, OMV, Royal Dutch Shell, Uniper, and Wintershall to provide financing for 50 per cent of the total cost of the project.