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.

Despite the severe impact on energy sector, as a result of the current health crisis, members of the federation recognize the upward trend in the European Union’s dependence on natural gas imports.

Against the background of a steady increase in demand cumulated with the downfall for the domestic production, ensuring security of natural gas supply represents a necessity.

The BRUA gas pipeline is therefore an essential stage in the development of the national natural gas transmission system (NTS). This project aims to increase security in Romania’s natural gas supply through access to new sources, as well as the transit to Central European markets of natural gas production in the Caspian Basin.

In addition, BRUA is also a way to access the European markets of a part of the potential Romanian production in the Black Sea.

As we have insisted in the past, according to studies and analyses conducted by FPPG with the support of experts in the field, the interconnection of Romania to regional transmission networks is an essential step towards the development of the Romanian natural gas market.

The advantages are multiple and concern energy security, as well as commercial, economic, political benefits. Among them we mention:

  • The connection to the regional natural gas transport corridors allows the supply from new sources. For this reason, Romanian consumers, domestic and industrial, will benefit from the effects of competition between multiple sources of natural gas.
  • The development of a transparent and liquid domestic trading market, supported by the two-way link to the European Central Gas Hub at Baumgarten (CEGH), which will be established through the BRUA gas pipeline, will provide consumers with predictability and security of supply.
  • Interconnection can assure Romania an important position in regional markets and will implicitly increase energy security.
  • The activity of underground storage of natural gas, with significant geological potential for expansion, can be developed and modernized on a commercial basis, in a regional market context.
  • The access of Romanian gas producers to regional and European markets will stimulate investments both in the upstream segment and infrastructure. This may be an instrumental condition in the future development of the offshore sector in the country.

For additional details, please contact the External Affairs Director- Daniel Apostol / +40 732 999 353 / Email: daniel.apostol@fppg.ro

The Oil and Gas Employers’ Federation (FPPG) is an important supporter of achieving the objectives of the Energy Union (EU), thus ensuring safe, sustainable, competitive and affordable energy for final consumers. FPPG, through affiliated companies, represents over 90% of domestic natural gas production in Romania. The federation is also a founding member of the Concordia Employers ‘Confederation, the only entity in Romania affiliated to the IOE (International Employers’ Organization). We constantly support the principles of stability, predictability and competitiveness of the legal framework applicable to the Romanian energy sector.

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