Austria warns of far-reaching consequences of cutting off Russian gas

Austria's Energy Ministry has warned that a complete cutoff of Russian gas supplies could pose risks to the central European country, which remains heavily dependent on Moscow for the fuel.

Fuel prices in Europe have spiked after Ukrainian troops last week reportedly entered the Sudzha gas terminal in Russia's Kursk region, prompting energy officials and traders to reassess the possibility of supply disruptions.

As the Russia-Ukraine conflict takes a new turn, Austria – an EU member state – sees a “huge risk” from a sudden halt in Russian gas flows, which continue to fuel the Central European country’s export-oriented heavy industries.

"As long as we remain dependent on Russian gas supplies, there is a significant risk of a corresponding supply disruption with far-reaching consequences," the Austrian Energy Ministry said in response to media questions on August 12. "We must end Austria's dependence on Russian gas supplies as soon as possible."

The Sudzha gas metering station is located near the Russia-Ukraine border. Photo: Novaya Gazeta Europe

Austria's ruling coalition has pledged to end imports of Russian gas by 2027 as part of a broader transformation of the Alpine country's energy system.

The government in Vienna is expected to present a detailed roadmap before Austria's general election on September 29.

According to an Austrian government report published in June, the EU member state could replace Russian gas with supplies from Italy and Germany, which would be enough to cover twice Austria's annual needs.

Transit capacity will increase to 212 terawatt-hours (TWh) annually by 2027 from about 185 TWh this year. Meanwhile, Austria's fuel consumption fell about 23% in the first half of this year compared with an average demand of 91 TWh before the conflict broke out in February 2022. Last year, the country used just 75 TWh of gas.

According to the worst-case scenario published by the Austrian government, if Russian gas flows suddenly stop and Austria cannot receive additional fuel from Italy, Austria's gas reserves could fall to just 15% by 2026.

A more likely scenario is that supplies from Russia will stop from January 2025, while supplies via Italy can meet the increased demand and stocks will reach 60% by 2027.

Austria is one of the few European countries that maintains one of the oldest and deepest relationships with Russian energy.

While overall gas imports from Russia have fallen, 98% of Austria's gas imports in December last year came from Russia, a record high.

In 2018, Austria extended its gas supply contract with Russia until 2040. Currently, the Austrian government is considering whether it can terminate the agreement with Gazprom ahead of schedule.

Minh Duc (According to Bloomberg, Kyiv Independent)

Source: https://www.nguoiduatin.vn/nuoc-eu-canh-bao-hau-qua-sau-rong-khi-doan-tuyet-khi-dot-nga-204240815183442027.htm