Energy Security

A competitive gas market and interconnected transportation system will bring gas supply security to Romania

Better cross-border connections of the Romanian national gas pipeline system with the systems of its European neighbors will allow the Romanian gas market to become a more integrated part of the single EU gas market. A more integrated market will increase the security of gas supply to the consumers in Romania by diversifying supplies, and will ensure security of demand for producers through an increased access to a large, competitive market. The Romanian gas market will become more competitive, which further supports additional investments in developing Romania’s offshore gas resources.

Investors in offshore development need to be able to market their gas resources in open competition at market-based prices.

RBSTA supports government efforts to create an open, gas market to supply Romania and elsewhere in Europe.

RBSTA supports cross-border gas pipeline infrastructure projects such as the “BRUA” or similar project, which aims to build a better connection between the Bulgarian, Romanian, Hungarian, and Austrian gas markets and the more liquid market in northwest Europe.

Maintaining a stable investment climate and following EU energy policies throughout the lifetime of oil and gas projects is important to creating a stable, competitive gas market.

Investors need to be free to negotiate commercial arrangement with parties of their choice and have a high degree of comfort that the legislative framework in Romania will allow this in the future. Regulatory intervention can distort investment incentives. Additionally,

  • Prices should be deregulated and freely negotiated between market parties. This allows Romanian production to compete with internationally and supports trade, investment and economic windfall back to Romania.

  • Unrestricted import, export and trade is required by the EU single energy market legislation and allows oil and gas companies to balance supply and demand needs in Romania without the risk of impacting production.

Better cross-border connections will foster more domestic production and support the evolution of a more competitive Romanian gas market. As a result we will see:

Interconnectivity Means Security of Supply: Better physical and commercial cross-border interconnectivity of the Romanian national gas pipeline system with the systems of its European neighbors will:

  • Enable the development and marketing of all economically producible national gas resources. Without this secure access to a sufficiently sized gas market, producers and potential investors would be exposed to the risk that they cannot fully market the resource, potentially resulting in no new major offshore investments;

  • Significantly improve security of supply for Romanian consumers because it not only enables increased production in the country but also allows suppliers and consumers in Romania to access the vast supplies available in the wider EU gas market; and

  • Increase the competitiveness of the Romanian gas market due as more gas suppliers will compete for the best offers to Romanian consumers.

Prices should be deregulated and freely negotiated between market parties. This supports trade, investment and economic production. However, many governments have energy assistance programs to help vulnerable customers. RBSTA supports the Romanian government’s effort to implement such a program based on EU practices and policies.