The safest and most valuable source of gas for the country is the Romanian offshore, and if projects in the Black Sea had not been continuously blocked over the years, gas production from BSOG’s Midia Gaz Development (MGD) project would have started 10 years ago, Mark Beacom, CEO of Black Sea Oil and Gas (BSOG), told Energynomics in an exclusive interview. In addition, BSOG is considering the development of renewable energy projects – a solar project, a wind project, as well as the large-scale development of offshore hydrogen production.
What is BSOG’s strategy of development in the Southeast and Central & Eastern Europe for the near future? When will the first gas be extracted, what further investments are due?
Location wise, our main focus is on Romania. From a business perspective, the MGD project is our main priority. The development of the MGD Project infrastructure in the Black Sea can accommodate the imminent production of gas from our Ana and Doina fields, provide offtake of 3rd party gas and is also envisioned to provide a significant advantage for developing green energy projects both during and after the production life of the Ana and Doina gas fields.
BSOG is currently looking to offer fast track development of 3rd party undeveloped gas fields in the Romanian Black Sea to ensure Romania can develop its offshore resources in the most cost effective and timely manner.
In addition, BSOG is investigating three renewable energy projects to be developed in the near and medium term: Onshore Solar Park on MGD lands to supply BSOG’s Gas Treatment Plant and for sale to third parties, running a pilot green hydrogen power plant on the offshore Ana platform to supply the platform’s power needs with wind and green hydrogen power in order to reduce the current requirement for emission generating power on the platform and to gain knowledge on the viability of developing a large-scale green hydrogen development at the site in the future and an offshore wind farm at an optimum location along the route of the already existing MGD pipeline corridor to bring the power back to shore and inland.
In the long run, once the offshore gas fields have been depleted, the view is for the production of large scale offshore Green Hydrogen as it would make the greatest use of all of the existing MGD Infrastructure. BSOG will continue to monitor whether the most effective use of MGD infrastructure once the natural gas fields have been depleted is for Hydrogen production, Carbon Storage or other uses.
We are positive that, with the constructive cooperation of all the stakeholders in the MGD project, first gas will be achieved in the 2nd quarter of 2022.
Did you already reserve capacity for transport, and if yes, on what pipes?
The processed gas will be delivered into the NTS operated by Transgaz at the gas metering station to be found within the GTP.
What is Romania’s best energy mix for the future, and how about interconnections to Ukraine and Republic of Moldova – how will they help the region?
Regrettably, Romania has this incredible unique resource of discovered, abundant Black Sea gas yet it has failed to realize on this tremendous opportunity. Instead, there are continuously ongoing analyses and commentary on unrealistic and theoretical alternatives for supply gas to Romania. The most secure, high value source of gas for the country is sitting undeveloped offshore at Romania’s doorstep. Had these projects not been continuously blocked throughout the years BSOG’s MGD project would have been producing 10 years ago, the other already discovered deep-water projects would now be onstream and further discoveries offshore would have been made which would continue to provide the huge economic wealth potential and full energy security for the benefit of the country. As far as the region is concerned, Romania would have been able to well over supply its own needs and would have been put in the enviable position of being able to provide secure and friendly gas to its neighbors and the EU region.
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This interview first appeared in the printed edition of Energynomics Magazine, issued in March 2022.
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