Austria is still receiving some Russian natural gas, two days after OMV, the country’s integrated energy company, announced it would stop paying Gazprom. The halt in payments follows a €230 million ($242 million) arbitration ruling from the International Chamber of Commerce, which was issued after Gazprom cut off supplies to OMV.
Reuters reports that gas flows from Slovakia, a key transit route for Russian gas through Ukraine to Austria, remained steady at 27 million cubic meters (mcm) per day before Gazprom stopped deliveries on Saturday. However, supplies only dropped by about 17% to approximately 22.6 mcm/day on Sunday. Data from Slovakia’s Eustream shows that Austria received about a third of its planned shipment of 22.3 million cubic meters on Monday.
In contrast, gas flows from Slovakia to the Czech Republic have increased by 74% since October, despite the absence of any supply contracts between Czech companies and Gazprom. Last week, Slovakia’s national oil company, Slovenský plynárenský priemysel (SPP), signed a short-term contract to purchase natural gas from Azerbaijan, preparing for the possibility of a complete halt in Russian gas deliveries via Ukraine.
Ukraine has indicated it will not renew its five-year transit agreement to supply gas to the EU when it expires on December 31, 2024. EU energy commissioner Kadri Simson has also stated that the European Commission has “no interest” in pushing for the renewal of the agreement. The EU has advised member states to prepare for a future without Russian gas, as Ukrainian gas supplies make up just 5% of total EU imports. Experts, including Aura Sabadus, a senior analyst at ICIS, predict that Austria, Hungary, and Slovakia will be the hardest hit by the upcoming reduction in Russian gas flows.
Meanwhile, Turkey has expressed willingness to significantly increase its natural gas exports to the EU in an effort to reduce its reliance on Russian gas. However, this goal faces significant challenges. Turkey is likely to re-export Azerbaijani natural gas to Europe, but this would require it to increase imports of Russian gas to cover any shortfall. Ankara is keen to play a leading role in the region’s energy supply, but it has indicated that it wants guarantees of demand before investing in the necessary infrastructure.
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