Gas Supply Contract Between OMV and Gazprom Would Have Run Until 2045

In order to terminate the gas supply contract between OMV and Gazprom in 2040, one of the two parties involved would have had to terminate by the end of 2037, according to the "Standard" (Friday edition). Part of the contract apparently also included an increase in delivery volumes.

OMV and Gazprom Agreed on Higher Delivery Volumes in Gas Supply Contract

According to "Standard", on June 5, 2018, the core points were initially fixed between the partially state-owned Austrian and the state-owned Russian corporation - with the agreement that the contract would run until 2045 if it was not terminated 36 months before expiry, i.e. at the end of 2037. At that time, several rounds of talks in St. Petersburg and Vienna were already behind the negotiators, and there was already an agreement on the contract changes, subject to the approval of management. Compared to 2018, the delivery volume was to increase by 11.6 terawatt hours per year, the take-or-pay rate (which in this case means that OMV also has to pay if it does not take the natural gas) was to be 96 percent and the prices were to be provided with a maximum surcharge.

This new price was to apply until the end of 2021, negotiations for further price design should have been taken up by July 2021 at the latest. Without an agreement, the prices from the time before the contract extension should apply again from 2022, OMV would have been able to reduce its annual purchase quantity again. It was also agreed that for the years 2019 to 2028, 2029 to 2038 and 2039 to 2040, each contract partner can apply for a price adjustment. On June 5, 2018, it was therefore agreed that the specific gas prices would be fixed until the end of 2018 - and this then also happened by November 2018, as documents would prove. All other contract contents should have remained unchanged.

(APA/Red)

This article has been automatically translated, read the original article here.