Austria proposes signing new long-term gas contract with Azerbaijan

Oil&Gas Materials 26 March 2022 16:59 (UTC +04:00)
Nazrin Israfilova
Nazrin Israfilova
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BAKU, Azerbaijan, March 26. The signing of new long-term contracts with other gas suppliers, such as Azerbaijan, Norway or Algeria, will lead to a decrease in world prices for blue fuel, the Head of the Austrian independent energy regulator (E-Control) Dr. Wolfgang Urbantschitsch said, Trend reports with reference to the Austrian media.

"How long can Austria hold out if Russia cuts the lines overnight? Filling levels roughly correspond to the time of year," Urbantschitsch said.

The current goal should be to fill the gas storage tanks so that there is enough fuel for next winter, the E-Control head noted.

"In Austria, gas is used to heat one million households and also to provide electricity. The main goal is to keep power sources (power plants) running, otherwise, there may be power outages," he said.

He also deplored Austria's failure to reduce its dependence on fossil fuels, including Russian gas.

"Now this should be a goal both at the European and national level," he added.

According to him, energy prices have risen sharply since the military actions began in Ukraine, and there are fears that the phase-out of gas from Russia will lead to even higher prices.

"Now new long-term contracts can be signed with other gas suppliers, such as Algeria, Azerbaijan or Norway. I am sure that then the situation with prices will normalize," Urbantschitsch said.

He also considers the decision of the Austrian National Council (lower house of parliament) to create strategic gas reserves to be correct.

"This is a reserve equal to one month's consumption, which can be used in the event of a crisis," he said.

"Germany has set itself the goal of becoming completely independent of Russian gas within two years. Can this be successful in Austria as well? I think that this is unrealistic. Renewable energy sources already provide 80 percent of electricity generation and the target is to be achieved 100 percent by 2030," said the head of E-Control.