The gas to be extracted from the Black Sea will be more expensive, but will strengthen the country’s energy security and allow Romania to start gas exports, said Frank Hajdinjak, general manager of E.ON Romania, at a conference organized by the company.

“It will be a very good thing for Romania’s development when the Black Sea gas will be available. So state authorities have to create a favorable framework for these investments as long-term investments. Otherwise, investments will not be made and it will be really stupid if Romania does not take this opportunity, “Hajdinjak said.

He explained why the price of Black Sea gas will be higher than that of current production.

“Prices will be higher, this is clear, as exploration and production costs in the Black Sea are higher than those on land. But Black Sea production will bring chances to increase Romania’s energy independence and chances to export gas as it is clear that we will have overproduction of gas in the future. It is a great opportunity for Romania in terms of energy security and a stabilizing factor for the country. We hope that the investors in this sector will find the support of the Romanian authorities for these investments to take place, “said the energy company official, quoted by Agerpres.

Hajdinjak said that E.ON has already begun talks with the Black Sea licensees to buy gas, but said it was a long way to signing contracts.

“From my point of view, gas production should be sold 100% on the stock market. There is no reason why gas should not be sold 100% transparently by the producers themselves, not by some sales companies. So from my point of view it would be absolutely wonderful to have 100% of transparent gas sold on scholarships, “said E.ON official.

The price of gas will increase

The price of gas on the Romanian market, both domestic and imported, will increase significantly in the following winter as a result of the increase in oil quotations, Hajdinjak said.

“In Romania, the price of imported gas is related to crude oil prices, which have increased greatly lately, so we expect the winter price to rise significantly, that’s clear. Gas import will also have an impact in the final price, “said the gas company official.

Moreover, since there is no real competition on the market, being only two domestic producers, the price of indigenous gas will tend to rise to the import price.

“There is a high risk that the domestic production price plus the storage tariff will reach the import price level,” Hajdinjak said.