Identifier
Created
Classification
Origin
08VIENNA1344
2008-09-12 13:43:00
UNCLASSIFIED
Embassy Vienna
Cable title:
OMV TO DOUBLE GAS STORAGE CAPACITY IN AUSTRIA
how-toVZCZCXRO1692 RR RUEHAG RUEHAST RUEHDA RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA RUEHLN RUEHLZ RUEHPOD RUEHROV RUEHSR RUEHVK RUEHYG DE RUEHVI #1344 2561343 ZNR UUUUU ZZH R 121343Z SEP 08 FM AMEMBASSY VIENNA TO RUEHC/SECSTATE WASHDC 0944 INFO RHEBAAA/DEPT OF ENERGY WASHDC RUEHZL/EUROPEAN POLITICAL COLLECTIVE
UNCLAS VIENNA 001344
SIPDIS
E.O. 12958: N/A
TAGS: ENRG PGOV EPET AU
SUBJECT: OMV TO DOUBLE GAS STORAGE CAPACITY IN AUSTRIA
REF: (A) VIENNA 242; (B) 07 VIENNA 2853
UNCLAS VIENNA 001344
SIPDIS
E.O. 12958: N/A
TAGS: ENRG PGOV EPET AU
SUBJECT: OMV TO DOUBLE GAS STORAGE CAPACITY IN AUSTRIA
REF: (A) VIENNA 242; (B) 07 VIENNA 2853
1. On September 10, Austrian oil and gas company OMV announced its
intention to double its gas storage capacity in Austria from 1.8 bcm
to almost 4 bcm. OMV currently operates three smaller gas
reservoirs in the east of Austria; the construction of a large
fourth one near Gaenserndorf (east of Vienna) is planned to start in
2009 and will be completed in stages between 2012 and 2015. OMV
says that the new storage is necessary both to increase supply
security and to cope with growing gas deliveries and peak demand
situations involving the large gas hub at Baumgarten (near the
Slovak border).
2. In January, OMV and Gazprom agreed to a joint venture with the
possibility of new, joint gas facilities in Austria (ref A). OMV
spokesman Thomas Huemer told Embassy rep that the new storage
facility is NOT/NOT a joint project with Gazprom: as with OMV's
current facilities, it plans to own the new gas storage
infrastructure. However, interested parties including Gazprom can
book capacity in OMV's storage reservoirs, Huemer said. Asked about
whether Gazprom (or OMV) might use a dominant market position to
shut out other customers, Huemer said that companies such as OMV and
Gazprom can theoretically block the re-selling of gas capacity to
third parties but that this has not happened to his knowledge and
would not make good business sense.
3. BACKGROUND: The new storage facility will add to the 2.4 bcm
capacity of the competing reservoir at Haidach (Salzburg province),
a joint project of the Austrian company RAG, Gazprom, and German
Wingas, who also plan to double capacity to 4.8 bcm. According to
statistics provided by the Ministry of Economics, Austria now has
the fourth largest gas storage capacity among EU member states and
is number eight worldwide. Austria's yearly gas demand is around 9
bcm.
GIRARD-DICARLO
SIPDIS
E.O. 12958: N/A
TAGS: ENRG PGOV EPET AU
SUBJECT: OMV TO DOUBLE GAS STORAGE CAPACITY IN AUSTRIA
REF: (A) VIENNA 242; (B) 07 VIENNA 2853
1. On September 10, Austrian oil and gas company OMV announced its
intention to double its gas storage capacity in Austria from 1.8 bcm
to almost 4 bcm. OMV currently operates three smaller gas
reservoirs in the east of Austria; the construction of a large
fourth one near Gaenserndorf (east of Vienna) is planned to start in
2009 and will be completed in stages between 2012 and 2015. OMV
says that the new storage is necessary both to increase supply
security and to cope with growing gas deliveries and peak demand
situations involving the large gas hub at Baumgarten (near the
Slovak border).
2. In January, OMV and Gazprom agreed to a joint venture with the
possibility of new, joint gas facilities in Austria (ref A). OMV
spokesman Thomas Huemer told Embassy rep that the new storage
facility is NOT/NOT a joint project with Gazprom: as with OMV's
current facilities, it plans to own the new gas storage
infrastructure. However, interested parties including Gazprom can
book capacity in OMV's storage reservoirs, Huemer said. Asked about
whether Gazprom (or OMV) might use a dominant market position to
shut out other customers, Huemer said that companies such as OMV and
Gazprom can theoretically block the re-selling of gas capacity to
third parties but that this has not happened to his knowledge and
would not make good business sense.
3. BACKGROUND: The new storage facility will add to the 2.4 bcm
capacity of the competing reservoir at Haidach (Salzburg province),
a joint project of the Austrian company RAG, Gazprom, and German
Wingas, who also plan to double capacity to 4.8 bcm. According to
statistics provided by the Ministry of Economics, Austria now has
the fourth largest gas storage capacity among EU member states and
is number eight worldwide. Austria's yearly gas demand is around 9
bcm.
GIRARD-DICARLO