Vienna focuses on diversifying gas supplies

In a bold step to reduce its dependence on Russian natural gas, Austrian Energy Minister Leonore Gewessler has announced specific state measures. Under a legal obligation, gas providers in Austria will be required to source an increasing proportion of their natural gas from non-Russian sources going forward. This initiative comes at a time when Russian gas accounted for 98 percent of Austrian natural gas imports in December 2023 – a record high since the beginning of the conflict in Ukraine. The Minister stated that the rise is symptomatic of a market failure, as non-Russian natural gas, though sufficiently available, had not been procured by companies to an adequate extent. However, to legally entrench her plan, a two-thirds majority in Parliament is necessary. Recent decisions to extend the supply contracts for Russian gas between Gazprom and the Austrian energy giant OMV, which were set until 2040, now face scrutiny. These agreements, referred to as 'stranglehold contracts', include a fixed commitment to purchase, meaning that payments to Russia are required irrespective of consumption. The examination of legal options to withdraw from these obligations is currently being expedited. Gewessler also advocated for a redesign of the Austrian security strategy, in which energy independence should play a central role. The European Union's goals to emancipate itself from Russian gas in the near future serve as a guiding principle. An encouraging sign is the decrease in gas consumption in Austria from 100.3 terawatt hours in 2021 to 75.6 terawatt hours in 2023, amounting to a reduction of around 25 percent.