A row between a Kremlin-controlled energy giant and one of its European customers has sent the price of gas surging to its highest level in a year.
Dutch front-month futures – the benchmark contract used in Europe – rose as much as 5.4pc on Thursday after a statement from Austrian energy group OMV raised concerns about supplies of gas from Russia.
OMV has been locked in long-running a legal row with Russian oil and gas supplier Gazprom, which is owned by the Kremlin, over disruption to supply in 2022 following the invasion of Ukraine.
The Austrian company received an award of €230m (£190m) from an arbitration council this week in relation to the dispute. OMV’s chances of recovering that sum from Gazprom are slim given sanctions placed on the company.
Instead, OMV suggested it may seek payment in kind by withholding money for ongoing gas supplied to it by Gazprom. It warned that this may hurt contractual relations with Gazprom and potentially lead to a halt of supplies.
Tom Marzec-Manser, the head of gas analytics at ICIS, said: “Given that OMV has said it will immediately seek to recoup the award, it’s possible it will withhold its payment to Gazprom for the deliveries it received in October. It’s a tense time.”
Leonore Gewessler, the Austrian energy minister, tweeted: “Austria can and will manage without Russian gas.
“Nevertheless, it is clear that a sudden interruption in supply could cause tension on the gas markets.”
Gas prices breached €46 per megawatt hour on Thursday for the first time since November last year.