The first contract for the sale of gas from the Black Sea concerns the export of certain quantities to Germany. This is despite the fact that Romanian officials have said over time that they will come up with a strategy to increase national gas consumption and exploit the Black Sea resources in the country. But for now we don’t have a place to use it internally, nor is there a strategy in this regard.
Currently, Romania provides its consumption needs from domestic production and does not need additional resources even in winter.
The total volume of gas in the Neptun Deep perimeter is estimated at about 100 billion cubic meters of natural gas, and the annual production could reach 8 billion cubic meters.
For comparison, Romania’s gas consumption is about 9-10 billion cubic meters per year, so we would have to double our consumption to use all the gas in the country.
Currently, there is no large industry that consumes gas in Romania. Only the OMV Petrom thermal power plant in Brazil, the CETs that produce thermal energy, the small factories that are left and the population with individual power plants still burn gas.
Among the biggest gas consumers in Romania, the chemical fertilizer plants of the InterAgro group have closed, Azomureș operates from time to time, and ArcelorMittal, Alro and Oltchim have substantially reduced their production.
In addition, the gas plants that will be built in the Oltenia Energy Complex are delayed and have not even passed the bidding phase. Only the Mintia plant could be put into use starting from 2026.
Burduja: There is an urgent need for a strategy that must be made by the entire Government of Romania
In April 2024, Burduja admitted in an interview for HotNews.ro that a strategy to use Black Sea gas is urgently needed.
“It is a strategy that must be made by the entire Government of Romania, the Ministry of Economy, the Ministry of Finance…”, said Burduja.
“It has to be done now,” replied the editor of HotNews.
“It’s fair. It’s fair,” agreed the minister.
Hungarians and Austrians have long been waiting to buy gas from the Black Sea. But now the Germans were ahead and concluded the first gas purchase agreement from OMV Petrom.
In the fall of 2023, Minister Burduja said that, according to the Offshore Law, Romania has priority in the use of gas from the Black Sea, but therefore a strategy is needed to increase gas consumption:
“The gas from Neptun Deep is subject to offshore legislation, and Romania has the first option for this gas and this is a closed discussion, to cover all domestic needs and we will strive to invest in the fertilizer industry and in the industry for 2027 pharma, Let’s exploit this gas, not just export it,” said Burduja on November 8, 2023.
Next to him at these statements was the Minister of Foreign Affairs of Hungary, Peter Szijjarto, who He had come to Romania to negotiate the purchase of gas from the Black Sea and increase transport capacity from Romania to Hungary.
Shortly before, in September 2023, a delegation of Austrians from OMV, led by the head of the company, he had come to Bucharest to ask for the amendment of the offshore legislationso that gas from the Black Sea can be exported. We are not changing any law, said then Prime Minister Marcel Ciolacu.
However, as long as Romania does not have a place to use those gases, there will be no need to change the legislation to be exported.
The Hungarians mocked us for the lack of strategy to use the Black Sea gases
The Hungarians have had their eyes on gas from the Romanian Black Sea for a long time.
One of the most memorable episodes is a press conference organized in Bucharest in 2018 by the Hungarian gas company, FGSZ, where the company’s leaders made ironic statements about Romania’s lack of strategy.
“It’s too simple for the internal needs of the country. You don’t have petrochemicals, you can’t use natural gas as a raw material. What do you do with the gas? You burn it, make a big fire?”, said Kristof Terhes, president of FGSZ, according to the report. Agerpres.
The Neptun Deep project in the Black Sea is being developed by OMV Petrom and Romgaz, in equal proportions. Production will begin in 2027.
According to HotNews.ro information, Romgaz will organize an open auction in the next period (open season – no) to sell its share of gas.
How the officials of Bucharest have changed their speech
If in recent years the officials of the energy sector have repeated that the Black Sea gas must remain in the country, their speech has changed now, with the signing of the first export contract for these resources .
“The export is part of the business plan of the Neptun Deep project and reflects Romania’s commitment to contribute to European energy security,” is stated in a press release from the Ministry of Energysent after the information about the export to Germany appeared.
“From the first year of operation, we produce a quantity of gas at least twice higher than the current internal consumption of Romania. In this context, we can firmly say that there is no danger that Romanians lack natural gas, and our country is in a privileged position to ensure regional energy security, including the Republic of Moldova. In addition, royalties and taxes on gas exported to Europeans are paid in Romania and become revenues to the budget Roman state”.
The representatives of the ministry did not specify if the OMV Petrom previously offered these quantities of gas to the Romanian state, as the law says.
Instead, the representatives of OMV Petrom stated for HotNews.ro that they complied with all the legal rules.
“Neptune Deep is progressing according to plan, with the start of production estimated for 2027. Given the magnitude of the project, it is common for producers to ensure in advance the sale of part of the volumes to be produced. We have no comment on business details. The company respects all legal rules in Romania,” says a response sent by the company’s press office, to HotNews.ro’s request.
Photo source: Dreamstime
