Gazprom Export will halt the supply of gas to Ørsted
On 31 May, Gazprom Export has informed Ørsted that the company will halt the supply of gas to Ørsted on 1 June 2022 at 6:00 CEST. 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.
Mads Nipper, Group President and CEO of Ørsted, says:
"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.
At Ørsted, we are in ongoing dialogue with the authorities, and we trust that the authorities, who have the overall overview of the supply situation in Denmark, are prepared for the situation. Ørsted will remain in close dialogue with the authorities regarding the situation.
The Ørsted vision is a world that runs entirely on green energy. Ørsted develops, constructs, and operates offshore and onshore wind farms, solar farms, energy storage facilities, renewable hydrogen and green fuels facilities, and bioenergy plants. Moreover, Ørsted provides energy products to its customers. Ørsted is the only energy company in the world with a science-based net-zero emissions target as validated by the Science Based Targets initiative (SBTi). Ørsted ranks as the world’s most sustainable energy company in Corporate Knights' 2022 index of the Global 100 most sustainable corporations in the world and is recognised on the CDP Climate Change A List as a global leader on climate action. Headquartered in Denmark, Ørsted employs 7,016 people. Ørsted's shares are listed on Nasdaq Copenhagen (Orsted). In 2021, the group's revenue was DKK 77.7 billion (EUR 10.4 billion). Visit orsted.com or follow us on Facebook, LinkedIn, Instagram, and Twitter.