Company representatives and government officials at signing ceremony. Credit: Gazprom.

Russian gas firm Gazprom has signed a new deal to extend the existing gas supply contract with Austria’s OMV until 2040.

Under the existing contract between Gazprom Export and OMV Gas Marketing & Trading, Gazprom agreed to supply gas to OMV until 2028.

The companies signed the extension in the presence of Russian President Vladimir Putin and Austria’s Federal Chancellor Sebastian Kurz.

Gazprom management committee chairman Alexey Miller said: “The agreement signed today is yet another testament to the growing need for gas imports both in Austria and Europe in general, the need that Gazprom is ready to satisfy.

“By extending this gas supply contract, we will provide Austria and other European countries with natural gas despite the increase in demand.”

“By implementing the construction project for the Nord Stream 2 gas pipeline, we will make gas deliveries even more reliable for the benefit of consumers.”

Last year, Gazprom’s gas exports to Austria increased to 9.1 billion cubic metres, from 6.1 billion cubic metres in 2016.

OMV executive board chairman Rainer Seele said: “By 2030, the European Union will have to import more than 80% of the needed natural gas.

“By extending this gas supply contract, we will provide Austria and other European countries with natural gas despite the increase in demand. Moreover, it will allow us to reduce CO2 emissions.”

Natural gas accounts for 23% of Austria’s energy mix.

The parties also discussed the Nord Stream 2 project, which involves the construction of a gas pipeline with the annual capacity of 55 billion cubic metres linking Russia and Germany across the Baltic Sea.