Leslie Massey
Austria's gas market is heavily reliant on imports, with the country importing 73% of its natural gas consumption in 2015. In 2017, Austria imported 494,582 million cubic feet of natural gas, while producing only 44,602.85 million cubic feet. Historically, Austria has obtained 80% of its natural gas from Russia, with the country becoming the first Western European nation to import gas from the Soviet Union in 1968. However, following Russia's invasion of Ukraine, Austria has been seeking alternative sources of gas. In 2024, Russia's Gazprom cut off natural gas supplies to Austria, prompting the country to explore other measures to replace the lost supply.
| Characteristics | Values |
|---|---|
| Gas reserves in Austria | 0.25 trillion cubic feet (Tcf) as of 2017 |
| Austria's rank in the world for gas reserves | 79th |
| Austria's rank in the world for natural gas consumption | 51st |
| Austria's consumption of natural gas per year | 335,101 million cubic feet (MMcf) as of 2017 |
| Austria's consumption of natural gas per capita per year | 38,085 cubic feet as of 2017 |
| Austria's consumption of natural gas per capita per day | 104 cubic feet as of 2017 |
| Austria's natural gas production per year | 44,602.85 million cubic feet (MMcf) as of 2015 |
| Austria's rank in the world for natural gas production | 69th as of 2015 |
| Percentage of natural gas imported by Austria | 73% as of 2015 |
| Amount of natural gas imported by Austria per year | 494,582 MMcf as of 2017 |
| Amount of natural gas imported by Austria per day | 1,355,000 MMcf as of 2017 |
| Austria's dependence on Russian gas | 80% as of 2022 |
| Austria's electronic gas trading platform | Central European Gas Hub (CEGH) |
| Austria's oil and gas market leader | OMV |
| Austria's gas supply from Russia's Gazprom | Cut off in 2024 |
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What You'll Learn
Austria's dependence on Russian gas
Austria has long been dependent on Russian gas, and this dependence has only increased over the years. In 2017, Austria imported 73% of its natural gas consumption, with Russia being the largest supplier. In 2022, before the Russian invasion of Ukraine, Austria sourced 80% of its natural gas from Russia, making it the second-largest investor in the country.
Austria's relationship with Russia regarding natural gas goes back to 1968 when it became the first western European country to import Soviet gas. Over the years, Austrian companies, particularly in the energy sector, have become deeply intertwined with Russia. This has resulted in a "tradition of dependence on Russia," as stated by Herbert Lechner, chief scientific officer with the Austrian Energy Agency (AEA).
However, there have been efforts by the Austrian government to reduce this dependence. The energy minister, Leonore Gewessler, has acknowledged the need to make the country more independent with renewables. Additionally, Austrian oil and gas market leader OMV has stated that it would have replacement cover for lost Russian gas supply from its own production facilities in Norway and Austria, as well as from the global market. Nevertheless, progress has been slow, and Austria continues to be a major gateway for Russian gas to Europe.
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Austria's gas imports from Norway
Austria's gas imports come from several sources, including Russia, Norway, and LNG imports from various countries. In 2022, about 80% of Austria's gas was imported from Russia, while the rest came from other suppliers, including Norway. This has created a significant dependence on Russian gas that has deepened over time and cannot be rectified quickly.
However, due to the Russian-Ukrainian conflict, Austria has been seeking to diversify its gas sources and reduce its reliance on Russian imports. As a result, the share of Russian gas imports decreased to an average of 58% in 2022. Norway is one of the alternative sources of gas for Austria.
The Austrian oil and gas market leader, OMV, has stated that it can replace lost Russian gas supplies with its own production facilities in Norway and Austria, as well as through imports from the global market. OMV has a 40% national gas market share and has access to LNG capacities at the GATE terminal in Rotterdam and all European marketplaces.
Austria's Baumgarten hub near the Slovakian border receives gas from Norway, along with Russian gas via Ukraine. This hub allows Austria to distribute gas to the Czech Republic, Italy, and Southeast Europe. The country's electronic gas trading platform, the Central European Gas Hub (CEGH), plays a crucial role in gas distributions to and from the region, serving 319 participants.
In conclusion, while Austria has historically relied heavily on Russian gas imports, it is actively working to diversify its gas sources, with Norway being one of the key alternative suppliers. OMV's presence in Norway and its access to global markets help ensure that Austria can secure the gas supplies it needs.
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Austria's low gas reserves
Austria's gas reserves are extremely low, with only 0.25 trillion cubic feet (Tcf) of proven gas reserves as of 2017. This places the country 79th in the world for its gas reserves, accounting for a mere 0.004% of the world's total natural gas reserves. Notably, Austria's total gas reserves are less than the country's annual consumption, which stood at 335,101 million cubic feet (MMcf) in 2017. This disparity between reserves and consumption means Austria is heavily reliant on natural gas imports to meet its energy needs.
Austria's domestic gas production is limited, with the country producing 44,602.85 million cubic feet (MMcf) of natural gas per year as of 2015, ranking 69th in the world. However, this level of production falls far short of meeting the country's demand, leading to a significant import dependency. In 2015, Austria imported 73% of its natural gas consumption, amounting to 214,433 MMcf.
To diversify its gas sources, Austria has explored alternative import routes through Italy and Germany. Additionally, OMV has secured replacement cover for potential losses in Russian gas supply through its own production facilities in Norway and Austria, as well as through access to the global market and European marketplaces. Austria's well-developed gas infrastructure, including its Central European Gas Hub (CEGH), also allows it to act as a gateway for gas distribution to other European countries, such as the Czech Republic, Italy, and southeast Europe.
While Austria's gas reserves are low, the country has taken steps to ensure supply security. In October 2022, Austria reached 80% of its gas storage capacity, providing a good safety cushion for the winter months, according to Energy Minister Leonore Gewessler. This achievement was in line with new EU rules mandating member states to fill their storage facilities to 80% by November 1, 2022, and 90% in subsequent years.
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Austria's gas distribution to other countries
Austria is a net importer of electricity, with a high dependency on natural gas imports to sustain its consumption levels. In 2015, Austria imported 73% of its natural gas consumption, and in 2017, the country imported 494,582 million cubic feet (MMcf) of natural gas.
Austria has been a significant gateway for Russian gas to enter Europe. The country's Baumgarten hub near the Slovakian border receives Russian gas via Ukraine, along with shipments from Norway and other countries. Austria can then distribute this gas to the Czech Republic, Italy, and Southeast Europe. The country's electronic gas trading platform, the Central European Gas Hub (CEGH), served 319 participants and saw nominations of 575.1 terawatt-hours (TWh) in 2023, showcasing its role in distributions to and from the region.
However, due to the Russia-Ukraine conflict, Austria and other countries receiving Russian gas through Ukraine have been exploring alternative supply sources. Austrian oil and gas market leader OMV has stated that it would have replacement cover for lost Russian gas supply from its own production facilities in Norway and Austria and through the global market. Austria also has LNG capacities at the GATE terminal in Rotterdam and access to all European marketplaces.
In addition to the domestic distribution system, Austria has major transit pipelines within Market Area East. These pipelines connect the import station Baumgarten with Italy (Trans Austria Gasline (TAG)), Germany (West Austria Gasline (WAG)), Hungary (Hungary-Austria Gasline (HAG)), and Slovenia (Croatia) via the Trans Austria Gas Line and the South East Gas Line (SOL). These pipelines have the capacity to transport about 100 billion cubic meters of mainly Russian gas to other Western and Central European states annually.
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Austria's alternative fuel sources
Austria has very limited natural gas reserves, ranking 79th in the world with only 0.25 trillion cubic feet (Tcf) as of 2017. This amount is less than the country consumes in a single year, making Austria highly dependent on natural gas imports. In 2015, Austria imported 73% of its natural gas consumption, with a significant amount coming from Russia. However, Austria has expressed its desire to end this dependency on Russian gas.
In light of this, Austria has been exploring alternative fuel sources to reduce its reliance on natural gas imports. One of the key areas of focus is renewable energy sources. Austria has set ambitious targets for itself, aiming to achieve 100% renewable electricity supply by 2030 and become climate-neutral by 2040. The country is well on its way, with over three-quarters of its electricity generation already coming from renewable sources as of 2020.
The renewable energy sources that Austria is tapping into include hydropower, wind, solar power, geothermal power, and biomass. The production of district heating from biomass has seen a rapid increase since 1990, with its share rising from 7.3% to 51.2% as of 2020. There are now around 2,400 plants in Austria that generate heat from biomass, and this trend is expected to continue.
In addition to biomass, electrical energy is also becoming increasingly important in Austria's energy mix. The country has a considered renewable energy potential of 231 TWh, which could cover the final industrial energy consumption. However, there is still a coverage gap for other sectors, which will need to be addressed through efficiency gains and/or imports.
To achieve its climate goals and reduce energy dependence, Austria is also encouraging the use of sustainable heating systems, the electrification of transport, and investing in public transport infrastructure. These measures, along with renewable energy sources, are expected to play a crucial role in ensuring Austria's energy security and sustainability.
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Frequently asked questions
Austria has been dependent on Russian gas since 1968, when it became the first Western European country to import gas from the Soviet Union. In 2022, Austria obtained 80% of its natural gas from Russia. However, in 2024, Russia's Gazprom cut off its gas supply to Austria.
Austria's energy minister said the country wanted to end its dependency on Russian gas. Austria's energy regulator E-Control said a suspension of Gazprom exports had been factored into its winter 2024/25 and winter 2025/26 supply scenarios. OMV, Austria's oil and gas market leader, said it would have replacement cover for lost Russian gas supply from its own production facilities in Norway and Austria, and the global market.
Austria uses relatively little gas in power plants. Most of its electricity comes from renewable energy sources, particularly hydropower.
Austria can distribute gas to the Czech Republic, Italy, and Southeast Europe.
