Russia's Gazprom and Austria’s OMV extended the contract for Russian gas supplies up to 2040, Gazprom announced on Wednesday.
Alexey Miller, chairman of Gazprom and Rainer Seele, chairman of OMV's executive board, signed the agreement in Vienna to extend the existing contract for Russian gas supplies to Austria. The contract due to expire in 2028 between Gazprom Export and OMV Gas Marketing & Trading will now run until 2040.
The document was signed in the presence of President Vladimir Putin and Federal Chancellor of Austria Sebastian Kurz as part of the celebrations marking 50 years of supplies of Russian gas to Austria. June 1 marked the 50th anniversary of Russian gas supplies to Austria.
'The agreement signed is yet another testament to the growing need for gas imports both in Austria and Europe in general - the need that Gazprom is ready to satisfy. By implementing the construction project for the Nord Stream 2 gas pipeline, we will make gas deliveries even more reliable for the benefit of consumers, Miller said.
'By 2030, the European Union will have to import more than 80 percent of the needed natural gas. By extending this gas supply contract, we will provide Austria and other European countries with natural gas despite the increase in demand. Moreover, it will allow us to reduce carbon emissions,' OMV's Seele said.
OMV is Gazprom’s main partner in Austria. The companies cooperate in gas production, transportation and supplies.
In 2017, Gazprom set a notable record for gas exports to Austria at 9.1 billion cubic meters, a rise of 50.3 percent, or 3 billion cubic meters, from 2016.
The Nord Stream 2 is the planned gas pipeline project from Russia to Germany across the Baltic Sea and is set to have an annual capacity of 55 billion cubic meters.
By Murat Temizer
Anadolu Agency
energy@aa.com.tr