Romania is diversifying its energy sources

Over the past weeks, due to the invasion of Ukraine by Russia, the international community has imposed tough economic and financial sanctions on Russia. However, behind the skepticism of some countries to impose sanctions was their dependence on Russian gas in particular, as they fear that a possible European embargo on Moscow could make the Kremlin turn off the gas. Moreover, the Russian gas reaches Europe via Ukraine. Among the major gas importers from Russia are such countries as Germany, Italy, France, Austria, Hungary, the Czech Republic and Slovakia. In these circumstances, reducing Russian gas imports is particularly pressing for the countries most exposed to a possible supply disruption.

On the one hand, the European Commission has proposed a two-thirds reduction of Russian gas purchases and an end to dependence on Russian fuel supplies well before 2030. At the same time, the EU has called on member states to ensure, by November, 90% of the gas stocks for next winter and are considering capping gas and electricity prices. In another development, the US Secretary of Energy Jennifer Granholm has announced that the International Energy Agency is preparing measures to reduce Europe’s dependence on Russian gas. The United States has resorted to the strategic oil reserves to support demand from Europe and has called on other producing countries to do the same. In the European Union, Romania is fortunately the least dependent country on Russian gas, being the second largest oil and gas producer in the EU, with large amounts of untapped natural gas in the Black Sea and the capacity to produce shale gas as well.

Analysts say that the lack of a strategic vision and legal uncertainty have led to these reserves not having been exploited so far, although it would allow Romania to be energy independent and export to other countries. The current energy minister, Virgil Popescu, promises that an additional amount of one billion cubic meters natural gas – the equivalent of 10% of Romania’s gas consumption – could come, even starting this year, from the exploitation by the Black Sea Oil & Gas company of a smaller perimeter in the Black Sea.

Instead, minister Popescu also says that Neptun Deep, the largest perimeter of natural gas discovered in the Black Sea, with an estimated reserve of 100 billion cubic meters, will not be operational before 2026. Virgil Popescu has also given assurances that Parliament will adopt amendments to the Offshore Law by the end of this legislative session. One of the variants under consideration is that 60% of the profit obtained from the exploitation of natural gas from the Black Sea should go to the Romanian state and the remaining 40% to foreign investors. (Roxana Vasile, Radio Romania International)