Russia’s Gazprom has agreed to increase contracted gas supplies to Austria by 1 billion cubic meters per year for the duration of the contract, as the country’s record demand for Russian gas continues.
Austria has been expanding and extending its gas import contracts with the Russian gas giant despite heavy opposition from the European Commission to Europe’s growing dependence on Russian gas. Gazprom’s exports to Europe have grown rapidly in recent years as the region’s own gas production has fallen but demand for gas has risen.
Expecting the trend to continue, Gazprom and OMV in June extended their gas supply contract to 2040 from 2028, according to Financial Times.
“Europe’s demand for gas will rise primarily as the result of gas-fired power plants successively replacing coal, coupled with the simultaneous decrease in European production,” OMV’s chief executive officer Reiner Seele said in a statement.
The increase in contracted gas supplies from Russia would firm both Austria’s and Europe’s energy supply security, he added.
The companies have not disclosed the total contracted volume. Gazprom’s gas supplies to Austria have already grown by a third on the year to 8.8 Bcm in the first ten months of 2018, according to the Russian company. Gazprom supplied a record 9.1 Bcm of gas to Austria in the full year 2017, up 50 per cent on the year, it said.