Russia's Gazprom Export begins gas supply to OMV in Germany under long-term deal

03/12/2020 08:46 Natural Gas

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Gazprom Export has begun to supply gas to the trading arm of Austria's OMV for delivery into the German market under a new long-term contract, the Russian company said Dec. 2.

OMV already has a long-term Russian gas import contract with Gazprom for 6 Bcm/year for deliveries to Austria that is set to run until 2040.

 

The new agreement for Russian gas supply into Germany was signed at the end of October, Gazprom Export said in a short statement.

 

"On Dec. 1, Gazprom Export began gas deliveries to the German market for OMV Gas Marketing & Trading," it said.

 

"This new long-term contract proves that Russian pipeline gas will remain in demand in Europe for many years to come," Gazprom Export CEO Elena Burmistrova said.

 

"We are glad that OMV will work on Europe's largest gas market in Germany with gas from Gazprom," Burmistrova said.

 

It is unclear how much gas and for what duration OMV has agreed to buy gas from Gazprom Export for German delivery.

 

OMV, in response to a request for comment from S&P Global Platts, said: "We can confirm that there is a new supply contract in place, but we do not disclose any details."

 

A Gazprom Export spokeswoman also declined to give further details.

 

OMV is one of Gazprom's key European partners. It is active in the Russian upstream with Gazprom, and is a co-financier of the almost-complete 55 Bcm/year Nord Stream 2 gas pipeline to Germany.

 

Its move in 2018 to extend to 2040 its long-term contract with Gazprom was a sign of the companies' close relations.

 

The contract signed in 2006 with OMV subsidiary Econgas -- which was fully consolidated by OMV in 2015 -- was due to expire in 2028.

 

source:spglobal.com

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