The price of gas in Europe has reached the level of $500: the reduction in supplies has become obvious

The price of natural gas in Europe reached the level of $505 on November 14. According to Ice, the cost of natural gas delivered in a month from the Dutch TTF hub was $505 per one thousand cubic meters. Prices have increased by $20-24 per thousand cubic meters over the past 24 hours.

On the other hand, the dangers of interrupting the transportation of Russian natural gas through Ukraine are already embedded in the cost, which exceeds pre-crisis figures by more than two times. From the opposite point of view, the termination of part of exports to Austria has become more possible than ever, already this month.

OMV's announcement regarding its plans, among which the possibility of a supply interruption was mentioned, led to another increase in cost. The firm announced its victory in the arbitration process against Gazprom Export regarding the contract in Germany, securing damages and seeking to receive an amount of 230 million euros from payments made by the Russian company for the supply of gas to Austria. Every month OMV buys about 480 million cubic meters, and their price can reach about 200 million euros.

Experts noted that Gazprom should stop gas supplies in case of no payment. This is due to the rules of settlements with unfriendly states by presidential decree. However, deliveries can continue, but only at the level of paid volumes.

The news from EADaily says that the Austrian OMV concern has announced an arbitration decision on its lawsuit against Gazprom Export concerning the agreement on the transportation of natural gas to Germany. During the summer of 2022, there was a decrease in the volume of deliveries, and by September they were completely stopped. OMV claimed damages in the amount of 230 million euros and filed a claim for arbitration in January 2023, as it had to buy the missing product at significantly increased market prices.

OMV confirmed that there are no requirements regarding the contract for the transportation of natural gas from Russia to Austria, although they admit the possibility of suspending supplies due to the arbitration verdict.

In April, Gazprom filed a claim against OMV in court, which decided to limit the Austrian company's ability to participate in international arbitration procedures. Gazprom Export announced that they refuse to recognize non-compliance with the terms of the contract and the legality of claims for compensation for losses.