daniel apostol rra - fppg

Oilman Day: Oil and gas industry continues the efforts to support the modernization of Romania

PRESS RELEASE

September 8, 2020

On the occasion of Oilman Day, FPPG thanks the tens of thousands of dedicated people in the industry. Despite the major restrictions generated by the pandemic, they were permanently on duty and provided absolutely vital energy resources for the Romanian economy. Happy Anniversary!

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PRESS RELEASE – August 4, 2020

In the context of the latest information in the public space, The Oil and Gas Employers’ Federation (FPPG) would like to take this opportunity to reiterate the major importance of strategic projects in the energy field, especially BRUA – Bulgaria-Romania-Hungary-Austria interconnector.

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GUIDELINE ON COMPETITION RULES COMPLIANCE WITHIN THE OIL AND GAS EMPLOYERS’

The Oil and Gas Employers’ Federation is dedicated to representing the common interests of its members, in compliance with competition rules, the compliance of the activities undertaken within the Federation with competition rules being one of the representative aims of the Federation.

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ziua petrolistului - fppg

PRESS RELEASE – Oilman’s Day – september 8, 2019

The Romanian oil and gas industry

September 8th, the Oilman’s Day: On their anniversary, oilmen demand public policies to encourage investments in the sector, to increase the role of industry in the development of the national economy and for the efficient protection of vulnerable energy consumers. The Romanian oil and gas sector once again calls on the Parliament and the Government to ensure a transparent, stable and predictable regulatory framework for the benefit of consumers, the state and investors.

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comunicat de presa brm - fppg

Press release – september 5th, 2019

FPPG rejects the alarmist and unfounded statements about the effects of returning to a free and functional gas market.

OUG 114 did not lower the gas bill

GEO 114 was presented as a measure aimed at reducing the gas price for domestic consumers. In reality, the gas bill has not decreased. On the contrary, the price for industrial consumers increased, which was reflected in the price of consumer goods.

The elimination of the provisions of GEO 114 and the return to a free and functional market would lead to the reintroduction in the market of a 4.3 bcm (representing the obligations for the regulated market), which will allow the decoupling from the import prices.

Moreover, the increase of interconnection capacities planned for next year, from Bulgaria, Hungary and Ukraine will enable more gas to gas competition with a diversification of sources of gas, LNG for example.

Vulnerable consumers must be protected

The main argument against the liberalization of the gas market is the protection of the vulnerable consumer. Vulnerable consumers must be protected by mechanisms that can coexist with a free market, as is the case in other countries. Unfortunately, even with support of consultant like Emerton to define a scheme, a functional mechanism for protecting them has not been implemented in Romania whereas it has been done in other countries in Central Europe, it is therefore required urgent action now.

Gas market liberalization is a necessity

In 2001, during the negotiations for EU accession, Romania committed to the liberalization of the gas market until 2007. It took place for a short period, from 2017 to December 2018, when by the introduction of GEO 114, Romania regressed as far as the gas market is concerned. In these years, two infringement proceedings were opened against Romania on the gas market.

The impact of decades of delays in liberalization translates into paradoxes such as the fact that only 30% of households in Romania are connected to gas networks.

A regulated market does not attract investment – in recent years we have witnessed the exit of some big companies from the market and the slowing down or even blocking of major investment projects. At the same time, local gas production decreased and was replaced by imports, given that Romania has the potential to cover its gas needs exclusively from domestic production. Currently the rate of imports has increased to about 28%.

Given these circumstances, the immediate liberalization of the gas market is necessary, by eliminating the provisions of GEO 114 regarding the gas price, in order not to affect the gas supply to Romania. It is also necessary the concrete protection of the vulnerable consumer and the implementation of comprehensive energy efficiency programs, which have the direct effect of significantly lowering the energy bills.

 

studiu emerton - fppg

The Natural Gas Market in Romania: How do we guarantee the security and competitiveness of the sector?

The Romanian gas sector is not functional, its  development towards a fair and balanced liberalized market is impeded by major hurdles.

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comunicat de presa - fppg romgaz

PRESS RELEASE – FPPG salutes 110 years of energy and welcomes Romgaz

On the occasion of celebrating 110 years history of natural gas production in Romania, FPPG welcomes Romgaz among its members.

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studiu oportunitatea gazelor naturale - fppg

The natural gas opportunity in Romania’s residential sector

We embarked on this research with several ques­tions in mind. What natural gas has to offer to Roma­nian consumers, particularly in light of the much dis­cussed discoveries in the Black Sea?

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comunicat de presa noiembrie 2018 - fppg

PRESS RELEASE

FPPG launches a new independent study conducted by Deloitte Consulting – EVALUATING CRITERIA FOR ESTABLISHING NATURAL GAS PRICES . The study contains descriptions and comparisons of similar situations in other European countries, and presents a number of recommendations, as well as a more effective alternative to the current methodology used for calculating the gas price.

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studiu de referinta gaz - fppg

Principles for determining the reference price for natural gas

National link

The new methodology for determining the reference price for natural gas royalty calculation is based on an external hub where the Romanian gas does not have access. According to the current methodology for determining the reference price related to royalty calculation applicable for the production of natural gas in Romania, this price is based on the prices and quantities traded at the CEGH external hub from Baumgarten (Austria).

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