Without Russian gas, the Austrian energy giant's gas sales failed

The momentary benefit that Austrian OMV received from stopping Russian gas supplies is turning into more significant losses for the Central European energy giant. Without Gazprom, prices in the region rose, and OMV's margin plummeted.

Austrian OMV is one of the oldest partners of Gazprom in Europe, whose cooperation began back in the distant 70s. However, in November last year Gazprom stopped gas supplies for the Austrian company, as it did not make a regular payment. In Austria, the decision was motivated by the fact that they won the arbitration, but there are no options to receive compensation, except to keep the money due to the Russian company for themselves.

How much OMV won then is unknown. It should be a monthly payment that could be equivalent to the compensation that the arbitration awarded the Austrian company — 230 million euros. About 500 million cubic meters were supplied to OMV every month.

The supply of Russian gas, whose price is tied to stock quotes, allowed OMV to receive mostly cheaper gas. Including due to cheaper delivery, which was undertaken by Gazprom.

The rejection of Russian gas, in turn, led to a reduction in supply in the region and the need to import fuel through more remote facilities in Northwestern Europe. As a result, for example, the price difference on the Dutch TTF exchange, which is the most liquid in Europe, and the Austrian Baumgarten has increased significantly. According to EEX, if on August 28 last year it was $ 19 per thousand cubic meters, then a year later it will be $ 42. This is an overpayment of $ 23 million for every billion cubic meters.

Such an increase in costs affected OMV immediately. In the quarterly report, the company reports that the revenues of the Gas and Electricity Sales division decreased by more than two—thirds in the first half of 2025 - from 297 million euros to 97 million euros. And in "Gas sales in Western Europe" — from 220 million euros to 116 million euros. The company complained about the low surcharge for industrial enterprises and the margin — the difference between purchase and sale, including pre-stored gas in storage.

The direct loss in margin in Western Europe was estimated at 6 million euros in six months.

OMV noted that the fall was smoothed out by another victory over Gazprom in arbitration. In January, the Stockholm Arbitration Court awarded the company another 48 million euros in compensation. However, the company does not say anything about whether it was able to actually receive compensation, since supplies from Russia was no longer there.

The Austrian giant also published the average sales price, which in the first half of this year was 50% higher — $ 414 per thousand cubic meters.

OMV receives alternative gas from Norway and in the form of LNG from the USA. In the future, the company expects to launch an offshore field in Romania in 2027.

As previously reported by EADaily, the new cost of gas in Central Europe has also led to an increase in electricity prices. Thus, according to the NordPool exchange, since November, the exchange value of electricity in the country has increased sharply — by more than 50%. And Austria passed the entire heating season with average monthly quotations of 106-140 euros per MWh. A year earlier, they amounted to 63-93 euros per MWh.

The main source of electricity in the country is green generation: hydroelectric power plants and renewable energy sources. However, thermal power plants that consume gas still account for 32%, which makes the country dependent on the cost of gas.

In June, the European Commission published the final version of the roadmap for the complete abandonment of Russian gas — from 2028. At the same time, Austrian Energy Minister Elisabeth Zechetner said at a closed meeting that the European Union should be open to resuming imports of Russian gas in the future, if between Russia and Ukraine will reach a peace agreement.

"We will systematically weigh all proposals, and then we will decide on our position. But it is already clear that when the "war" finally ends, this is what we must take into account when assessing the situation," said Elisabeth Zechetner.