Engie Signs Up for Romanian Midia Gas
Engie signed a gas offtake agreement with Carlyle-backed Black Sea Oil & Gas (BSOG) and its partners November 19, but it remains subject to an offshore project getting the green light.
The French utility group will purchase 0.5bn m3/yr gas from BSOG’s Midia gas development offshore Romania – specifically its Ana and Doina fields in the Black Sea – for a minimum period of 10 years, it was announced November 20 by BSOG. The gas will be delivered at Vadu entry point into Romania’s Transgaz-operated national gas transmission system, with which BSOG signed a gas transport contract last week to take effect from February 2021.
The agreement, along with the actual Midia development, remains subject to a final investment decision (FID) being taken. BSOG's CEO Mark Beacom expressed delight at Engie's signing, but reiterated that: "The assessment of the [Romanian] Offshore Law on the project’s economic viability remains a key part in determining whether a favorable decision to FID will be taken."
Edouard Neviaski, head of Engie’s global energy management unit, said that Midia "can be a stable long-term source of supply for the development of Engie’s position in Romania and the region and we strongly believe that this would enhance Romanian security of supply for years to come." The Midia project consists of five production wells (one subsea well at Doina field and four platform wells at Ana field). A 126 km gas pipe will link the Ana platform to a new shore-based gas process plant.
Signing of the Gas Sales and Purchase Agreement between Black Sea Oil & Gas and Engie at the latter's Paris headquarters, November 19 2018 (Photo credit: BSOG)