OMV to revamp natgas strategy in response to 'new gas world' – CEO

26 August 2014 17:14 Source:ICIS News

LONDON (ICIS)--Austria’s energy and petrochemicals major OMV is preparing a new strategy for its natural gas business in order to respond to changes in international gas markets, a company spokesman said on Tuesday.

The spokesman was confirming a media interview in Austrian business daily Wirtschaftsblatt with OMV CEO Gerhard Roiss.

In the interview, Roiss said that following completion of the restructuring of its refining and marketing business, OMV now needed a strategy to respond to "the new gas world."

"The old gas world was based on gas supply contracts of 20 to 30 years, with prices linked to oil," Roiss said.

"The new gas world is based on an open market, and gas is more and more traded on exchanges," he said.

Market barriers that used to guarantee high margins in the gas business were coming to an end, he said.

Roiss would not say whether as part of the revamp OMV may divest its interest in the Econgas gas distribution business. OMV expects to develop the new gas strategy within six to twelve months, he added.

By Stefan Baumgarten