Gazprom Export Halts Supply of gas to Orsted

Russian oil & gas giant Gazprom’s Gazprom Export has informed Ørsted on 31 May that the company will halt the supply of gas to Ørsted on 1 June 2022. Thus, Gazprom Export does not live up to the agreement to supply gas to Ørsted. Gazprom Export has maintained its demand that Ørsted pay for gas supplies in roubles. Ørsted is under no obligation to do so under the contract, and the company will continue to pay in euros. Ørsted Group President & CEO Mr Mads Nipper said "At Ørsted, we stand firm in our refusal to pay in roubles, and we’ve been preparing for this scenario, so we still expect to be able to supply gas to our customers. The situation underpins the need of the EU becoming independent of Russian gas by accelerating the build-out of renewable energy.”Since there is no gas pipeline going directly from Russia to Denmark, Russia will not be able to directly cut off the gas supplies to Denmark, and it will thus still be possible for Denmark to get gas. However, this means that the gas for Denmark must, to a larger extent, be purchased on the European gas market. We expect this to be possible.Ørsted has been preparing for this scenario to minimise the risk of Ørsted's gas customers, which are primarily major companies in Denmark and Sweden, experiencing shortfalls in gas supplies. Ørsted has storage capacity in Denmark and Germany, and is currently filling up these storage facilities to secure gas supplies to our customers and contribute to the market's security of supply.

Gazprom Export Halts Supply of gas to Orsted

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