Gazprom cooperation may be extended for 10 natural gas deposits in RomaniaUpdated: 26-02-2010 | Economy

Talks between Romania and Russia on the development of some natural gas deposits have been extended to 10 deposits identified by Romgaz, Trade and Business Environment Minister Adriean Videanu told a press conference on Friday.

'As regards the gas storage in Romania, the talk was extended to include the Roman Margineni depot. Romgaz identified further 10 deposits and in March we will have the data on these deposits,' Adriean Videanu said.

Moreover, Economy minister added Gazprom was interested in extending the cooperation with Romgaz on the depots developed by the joint venture to be set up by the two companies, with each of them due to hold a 50-percent stake. The total capacity of the storage facilities may reach 6 billion cubic meters of natural gas.

'Talks will not relate to the deposits exploited by Romgaz. The Roman-Margineni depot may store between 600 and 2 billion cubic meters of natural gas and all storage facilities could have a capacity ranging between 2 and 6 billion cubic meters,' the Economy minister added.

As regards the effects on the natural gas price to consumers, the MECMA official said it will depend on the way in which prices will be adjusted by the market.

'The mechanism relates to the capitalization of natural gas in summer and its storage and use in winter. It is important that we will have the resources here,' Videanu said.

Gazprom expressed interest in developing a direct relationship with the National Natural Gas Company Romgaz following the conclusion of the supply contracts in force regarding the imports of Russian natural gas to Romania on the occasion of a meeting held on Wednesday in Bucharest by Gazprom vice-president Aleksandr Medvedev and the Economy Minister Adriean Videanu.

At present, Romania imports gas from the Russian Federation through the Russian-German Wintershall company and Imex Oil.

The two officials discussed about aspects relating to the gas import from Russia, the cooperation with Romgaz for the development of the storage capacities in Romania, as well as the cooperation with Transgaz for the development of the transit network and the renegotiation of the contracts regulating the transit through Romania of the natural gas to the Balkan states, with a view to extend them, as they will expire in 2011.

Romgaz should have presented to Gazprom last year technical data on the natural gas storage facilities that would make the object of the agreement between the two corporations on the establishment of the Romanian-Russian joint stock.

The storage facilities should be 250 km away from the transit pipeline, according to Romgaz specialists. Gazprom is the world's largest natural gas producer. Europe is almost 25 percent dependent on Russia for natural gas, and 80 percent of Russian gas deliveries to Europe pass through Ukraine.
Romgaz and Gazprom could exploit new natural gas deposits in other countries
Romgaz and Gazprom discussed about a likely cooperation in the exploitation of some natural gas deposits in countries as Iraq, Azerbaijan, Turkmenistan and Russia, announced on Friday Minister of Economy, Trade and Business Environment Adriean Videanu in a press conference.

'Romgaz and Gazprom could cooperate in the exploitation of some natural gas deposits in other countries than Romania, respectively in Iraq, Azerbaijan, Turkmenistan or Russia. Romgaz has for instance geological data on some deposits in Iraq and in other states. The Russian side said it was open to cooperation with Romgaz to this end', underlined Videanu.

At the same time, in the framework of Wednesday talks with Gazprom officials, Romania and Russia discussed the conclusion of a new agreement on natural gas transit in the Balkan zone because the current contract will expire this year.

'We also discussed the conclusion of a new transit agreement for natural gas in the Balkan zone because the current one comes to an end. We will start negotiations in March', underlined the Economy Minister.

As for direct imports from Russia to Romania, the Minister of Economy said that the Russian side was ready to start negotiations when the current contracts come to a close.

'Russia is ready to start negotiations when the contracts through Russian-German Wintershall and Imex Oil expire, in order to directly supply natural gas to Romania and we are going to negotiate the imported quantities and the price', remarked Videanu. Current contracts expire in 2012.

As well, the Romanian side insisted in its cooperation with Russia on investments into energy production, based on natural gas and co-generation.

'We insisted on what it means cooperation in investments into energy production based on gas and in co-generation. Russia was interested in this matter because Gazprom is also the largest energy producer', Economy Minister also said.

In 2009, Russian Gazprom Group exported to Romania a quantity of 2.05 billion cubic meters of natural gas, 43 percent less than 3.575 billion cubic meters exported in 2008.

In exchange, in Q4 2009 compared to Q4 2008 Gazprom exports to Romania increased by 67 percent, to 500 million cubic meters in Q4 2009 from 300 million cubic meters in Q4 2008.

This happened after in Q1 last year Gazprom exported to Romania a quantity of 240 million cubic meters, down from 795 million cubic meters in Q1 2008. A more accentuated decline was in Q2 2009, when Gazprom exported to Romania 390 million cubic meters compared to 1.28 billion cubic meters in Q2 2008.