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ENERGY: How Austria has drastically reduced imports of Russian gas

Austria is no longer heavily dependent on Russian gas. How has this happened and how will it impact Austria’s gas supplies this winter? Here’s what you need to know.

ENERGY: How Austria has drastically reduced imports of Russian gas
Wholesale gas prices are falling but Austrian households are not seeing the benefits yet. (Photo by Kwon Junho / Unsplash)

Austria’s gas supply looks very different today compared to earlier this year when Russia invaded Ukraine.

Back in February, Austria sourced around 80 percent of all gas from Russia, with 10 percent coming from Norway, five percent from Germany and the remainder from other sources.

This put Austria in a delicate position as the EU began placing sanctions on Russia and experts voiced fears about Russia turning off the gas supply to Europe. This also took place at a time when Austria’s gas reserve tanks were only around 12 percent full.

READ MORE: Can British people in Austria claim the winter fuel payment from the UK?

However, as the first snowfall now covers more parts of the country, E-Control (the government regulator for electricity and gas markets) has confirmed that Austria reduced imports of Russian gas to 21 percent in September. 

The country’s gas tanks are also well stocked at just over 95 percent following a mild autumn. Although around a third of the gas belongs to neighbouring countries.

So how did this happen and where is Austria getting gas from now? The Local took a closer look to find out.

How did Austria reduce imports of Russian gas?

The biggest change to how Austria sources natural gas was by booking line capacity on pipelines that flow from Germany and Italy, reported Die Presse.

The gas now flowing to Austria is mostly coming from Norway or is liquefied natural gas (LNG).

At a recent press conference in Vienna, Johannes Schmidt from the Institute for Sustainable Economic Development, said: “Actually, it’s incredible what Europe and Austria in particular have achieved here over the summer.”

Austria’s partially state-owned OMV has also booked 40 terawatt hours (TWh) of gas transport capacity from Norway and non-Russian LNG suppliers for the period from October 2022 to September 2023. This gas is delivered to a tank in Oberkappel, Upper Austria, via Germany.

FOR MEMBERS: What are the rules about turning on the heating in the workplace in Austria?

Additionally, Austria has confirmed LNG shipments from Dubai, which further helps to boost the country’s energy security.

Picture taken on May 3, 2022 shows a general view of the largest Austrian refinery OMV at Schwechat near Vienna, Austria. (Photo by JOE KLAMAR / AFP)

A statement released from the Federal Chancellery said: “The United Arab Emirates are a strategic partner of Austria and will make a contribution to the security of supply with LNG deliveries next winter, as agreed between OMV and the Emirati ADNOC.

“Furthermore, the Austrian and Emirati governments will intensify cooperation on energy issues and climate protection.”

However, purchasing gas from new sources hasn’t been the only tactic to reduce Austria’s dependency on Russian gas.

In July, Austria and Germany finalised a solidarity agreement to secure gas flows between the two countries in the event of an energy crisis. And in September, the Austrian Federal Government launched the “Mission 11” campaign to encourage consumers to save energy. 

Finally, there are long-term plans to expand renewable energy infrastructure across Austria to reduce the overall dependency on natural gas. But the results of this part of the plan will not be seen until the coming years.

READ MORE: How expensive are gas and electricity in Austria right now?

Is Austria’s gas supply now secure?

Experts are positive about Austria’s ability to get through the coming winter without running out of gas.

However, they are now concerned about winter 2023/2024 with plans already being hashed out about how to secure gas supplies next spring and summer to fill up the tanks again.

The procurement of gas has also come at a big cost to Austria with the government spending €3.95 billion alone on securing the recently implemented strategic gas reserve of 20 percent of overall consumption, reports ORF.

And with energy prices set to skyrocket again for the next storage season, it’s likely the Austrian government will have to dig deep into the financial reserves once more in the spring.

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POLITICS

Austrian commission to examine quitting Russian gas deal

Austria's Climate Minister announced Tuesday that a commission has been set up to examine the possibility of exiting a gas supply contract between energy group OMV and Gazprom in a bid to cut its dependence on Russia.

Austrian commission to examine quitting Russian gas deal

Europe has sought to reduce its reliance on Russian oil and gas since Moscow invaded Ukraine in February 2022.

According to the latest government figures, Austria imported 90 percent of its gas from Russia in May.

“Dependence on Russian gas is and remains a threat to the economy and prosperity,” minister Leonore Gewessler of the Greens told journalists on Tuesday, adding that extending the country’s long-term supply contract with Gazprom in 2018 “was a mistake”.

Austria- currently governed by a coalition of the conservatives and the Greens- has struggled to divest itself of Russian gas.

With national elections coming up in late September, the coalition partners have repeatedly clashed in recent months.

READ ALSO: Austria summons Russia envoy after journalist told to leave

Gewessler said the commission of experts will examine the “long-term supply contracts” between OMV and Gazprom, which run until 2040 and have not been made public, while “analysing the possibilities for action as well as the risks”.

The contract will be scrutinised to see whether it is “possible to get out of these obligations”, said retired judge and former lawmaker Irmgard Griss, who will head the commission.

On the other hand, the “political… conditions of the 2018 contract extension” will be probed to “avoid similar mistakes in the future”, Gewessler added.

The initial findings are expected to be presented “by autumn”, the climate ministry said in a statement.

OMV was the first Western company to sign a supply contract with the former Soviet Union in 1968.

READ ALSO: Austria’s Raiffeisen Bank scraps controversial Russia deal

Austrian politicians have long sought close ties with Russia until Moscow invaded its neighbour.

Austrian companies continue to do business in Russia.

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