Romania Could Export Gas from 2013
Romania may be in a position to export natural gas from 2013, according to Rodin Traicu, State Secretary in the Ministry of Economy, Trade and Business Environment.
Currently gas exports are not possible due to technical restrictions. Romania has one gas pipeline with Hungary, which was completed in 2010. However, the only line that connects with the West, Szeged-Arad, can only be used to bring gas from Hungary to Romania.
The Romanian Government has committed that it will take measures to export gas through Hungary by the end of 2012, according to a Memorandum agreed with the European Commission (EC), obtained by Mediafax in May 2011.
"Technically, the gas flow can be reversed by 2012, in order to export gas not only to import. The terms of the memorandum were negotiated with the EC, not imposed," commented a source in Ministry of Economy.
In an interview with AGERPRES, Secretary of State Traicu said the goal of the interconnector is not to necessarily to export gas, but the implementation of European directives on safety gas systems of EU member countries.
“There is a European directive establishing minimum security stocks of petroleum products, including hydrocarbons. Gasoline, diesel and other liquid the new amounts are 90 days, before they were 67 days. The gas reserves to be maintained refers to 60 days of continuous operation of the uninterruptible consumers; this system is similar to interconnection on electricity. It's about self-help capability in the event of failure of any of the 27 EU member states. Then energy exchanges are permanent.”
Two other connections with Bulgaria and Moldova are under construction.
"We will be interconnected with the Bulgarians, gas will be exchanged in both ways. By the end, we will do tests on gas flow in both directions," Traicu said. “We are obliged to offer technical conditions that, in an emergency situation, to help e.g. Bulgaria, Bulgaria to help us from their gas reserve.”
In June of this year, in the context of discussions on the liberalization of gas prices, Prime Minister Victor Ponta said Romania must take into account the infringement proceedings relating to interconnection with Bulgaria, Romania and Hungary on the possibility of gas export.
"There was a memorandum submitted by Minister of Economy. During the next period, together with the Ministry of Finance, we will achieve what we have assumed in the agreement with the IMF and the European Commission taking into account, however, and the other obligations also an infringement procedure regarding the interconnection of Romania and Bulgaria and Hungary, regarding the possibility to export gas produced in Romania," Ponta said.
Romania pays the lowest price for natural gas in the Balkans at 0.28 Euro per cubic meter, with natural gas rates in the region generally below the European average. The highest price for gas in the Balkans is paid by consumers in Bosnia-Herzegovina (0.54 per cubic meter), while the average EU price is 0.64 Euro per cubic meter.
Romania has proven natural gas reserves of 630 billion cubic meters located in Transylvania, Moldavia, Wallachia and the Black Sea: of which 75% is located Transylvania, especially in Mures and Sibiu.
The largest natural gas field in Romania is the Deleni field which, discovered in 1912, straddles Bogeschdorf and Mures counties with proven reserves of 85 billion cubic meters. Other gas fields with reserves exceeding 10 billion cubic meters are Filitelnic (40 bcm), Roman - Secuieni field (24 bcm), Voitinel (11.8 bcm), Ghercesti (11 bcm and Sămaşel (10 bcm)
Romania presently holds is the third gas reserves in the European Union, after the Netherlands and the UK. However, this may prospectively change given Romania’s optimism for hydrocarbon riches in the Black Sea.
In February of this year, OMV Petrom and Exxon Mobil announced a discovery in the deep waters of the Romanian sector of the Black Sea.
The Domino 1 well discovery in the Neptune block, at 170 kilometers from shore in waters with a depth of about 930 meters, has received preliminary estimates at 42-84 billion cubic meters of natural gas, equivalent to the 3 to 6 times the annual consumption of Romania.
Romania currently has two major gas producers, state owned Romgaz Medias and OMV Petrom, representing 90% of national gas production and satisfying two-thirds of consumption. The shortfall in demand is imported from Russia through intermediaries.
"Energy industry in Romania has great potential, not only to secure the necessary resources for Romania, but also it has the potential to be a growth factor. First of all we have a mix of high potential primary resources" declared Mariana Gheorghe, CEO of OMV Petrom.
Silviu Molnar