The year 2021 is a critical one for the Black Sea gas, given that the deposits there are ready to be exploited, and the investment decision depends on the measures that will be taken by the authorities, said Christina Verchere, CEO of OMV Petrom, in an interview for Agerpres.
“2021 is a critical year for natural gas in the Black Sea and time plays a key role in the development of these projects. According to public statements, there is an intention for the Offshore Law to be amended through a parliamentary process, which is expected to take place in the first parliamentary session of this year. Romania has gas resources discovered and evaluated in the Black Sea and they are practically ready to be exploited. These resources are essential for energy supply – if the Black Sea gas projects do not materialize, it is estimated that gas imports will reach 40% by 2030. Natural gas in the Black Sea could be a source of economic development and valuable support in the energy transition,” said Christina Verchere.
“Unlocking the natural gas resources in the Black Sea would make Romania stronger and would create the premises for it to become the largest gas producer in the EU. The Romanian government stressed in its national energy and climate plan that unblocking gas resources in the Black Sea is essential for the country’s energy security.”
Fuel demand has fallen sharply
“Fuel demand, which was very high in the first two months of 2020, fell sharply during the quarantine. The market has started to recover as mobility restrictions have eased. However, demand in the retail market remained 6% lower in 2020 than the previous year.
”Natural gas consumption registered in Romania, last year, a significant increase of about 5%, according to our estimate, due to a higher use of gas for electricity production and in the fertilizer industry. The total gas production in Romania decreased by about 10% compared to the previous year, while the imports for 2020 are estimated to have covered about 20% of the national consumption,” added Verchere.
In the electricity market, current data show a 4% decrease in demand, while electricity production has decreased by 6%, mainly due to the significant decrease in coal electricity production. Lower domestic electricity production was offset by imports.
“We estimate a gradual recovery in fuel demand in the first two quarters of 2021, the first quarter still being affected by limited mobility and the specific trends of the cold season. The recovery is estimated in a background of a rising traffic, as vaccination progresses.”