RSS
MP Iancu: Finalisation of AGRI and Nabucco West projects, crucial for Romania
The finalisation of the Nabucco West and Azerbaijan-Georgia-Romania Interconnector (AGRI) pipeline projects is crucial to Romania as its domestic production decreases by the year and shortly Romania will have to become a natural gas exporter, Chairman of the Chamber of Deputies' Committee on Services and Industries Iulian Iancu told Agerpres in a recent interview.
'Gas from Azerbaijan is cheaper than gas from Russia, or, under these circumstances, we will put pressure of the Russian natural gas prices. The finalisation of the two projects is crucial to Romania. Why crucial? Because, on the one hand, production in Romania has fallen even this year by 1.6 per cent. Romania has recorded declines over the past years and even an accelerated one in domestic natural gas and crude oil production and we need to replace the lost quantities. On the other hand, although I have fought with my entire might for Romania not to export natural gas, the conditions imposed under the EU treaty compel Romania to export gas. As much as 80 per cent of the capacity of the Arad-Szeged interconnection pipeline is already reserved by big operators for gas trades in both senses. That means export is inevitable. This export will subtract gas from the country's basket and the quantity for Romanian industry and consumers has to be compensated for by imports. Or, import today, the version they offer me, is three times more expensive than domestic production and this is how they strike directly into the heart of the Romanian economy's competitiveness. Romania is continually losing competitiveness because it has to put up with continual rises in the most important cost, the energy cost. Then, the main measure will be to find an alternative to this cost, to reduce it. A perfect balance was stricken between Azerbaijan's wish to find a consumer market and our wish, as consumers, to find an alternative to Russia's expensive gas,' Iancu explained.
He mentioned that during a visit to Azerbaijan, March 13-16, a Romanian delegation made up of Romanian MPS, members of the Government and the business community the next steps were agreed upon with Azeri authorities to be taken in relation to the Nabucco West and AGRI projects.
'Together with Azeri Prime Minister Artur Rasizade, the economy minister and the minister of industry and energy steps were agreed upon that lay the foundations for an action plan, the two projects of major interests, that previously were either postponed or frozen. Now, Azeri President Ilham Aliyev has announced an 80-per cent participation of Azerbaijan in the natural gas pipeline carrying natural gas from Azerbaijan to Romania, via Turkey, pledging to cover 80 per cent of the Nabucco West costs. About AGRI, they told the visiting delegation that they guarantee the quantities of gas, meaning they make available 8 billion cubic metres of gas, and also cover most of the project's funding needs. They are waiting and asked Romania to speed up the feasibility study, which has been postponed several times by the company hired to carry it out,' said Iancu.
The ratification law of a support agreement for the Nabucco project, signed by Romania, Nabucco Gas Pipeline International GmbH and the Romania Nabucco National Corporation, was promulgated by Romania's President Traian Basescu and published in the Official Journal.
The Nabucco West pipeline is designed to carry Caspian gas from the border between Turkey and Bulgaria, via Bulgaria, Romania and Hungary, toward the Baumgarten Central European Gas Hub. As a central component of the South Gas Corridor, Nabucco West is located in an ideal position to diversify gas supply sources for over 500 million potential users in emerging economies from South-Eastern Europe, as well as from Western Europe.
The AGRI project, deemed by Romanian authorities the least expensive for natural gas transmission from the Caspian Sea and Central Asia to Europe, follows the Baku-Kulevi-Constanta route. Azeri gas will be liquefied in Kulevi and then carried to Constanta, Romania, via the Black Sea, to be de-liquefied at the liquefied natural gas (LNG) terminal.
The project could cost 4-4.5 billion euros and secure up to 8 billion cubic metres of natural gas. Constriction works could end in one or two years after the finalisation of the feasibility study.
Among the assets of the AGRI project are flexibility allowed by the LNG technology, a shorter route for Azeri gas to the European market, creating the Romania-Hungary interconnector, and also political support voiced by all the four partner states.
ROMANIA RATIFIES THE NABUCCO PROJECT SUPPORT AGREEMENT TO ALLOW SWIFT IMPLEMENTATION
The NABUCCO Project Support Agreement (PSA) signed between Romania, NABUCCO Gas Pipeline International GmbH and the NABUCCO National Company Romania has been signed by the Romanian President and published in the Romanian Official Gazette.
Reinhard Mitschek, Managing Director NABUCCO Gas Pipeline International GmbH. stated: "We welcome the renewed support of Romania for the NABUCCO pipeline. This is another important step forward, illustrating the advanced stage of development of the NABUCCO pipeline, a project which will ensure the diversification and security of energy supplies in Europe. Progress is far advanced in all areas: legal, engineering and commercial, and we are looking forward to further cooperation with the Romanian authorities as the Project continues".
Transgaz, the Romanian shareholder of NABUCCO, has recently approved the Equity Option and Funding Agreement and the Cooperation Agreement signed by NABUCCO Shareholders with Shah Deniz Partners.
Frank Siebert, CFO of the NABUCCO Gas Pipeline International GmbH, said: "We welcome the renewed support of Romania for NABUCCO, showing that the pipeline project is a win-win scenario for all stakeholders. The equity option and funding agreement is a significant factor in mitigating risk for investors, and we anticipate successful cooperation in delivering the pipeline project".
On June 8, 2011 Project Support Agreements (PSAs) between NABUCCO Gas Pipeline International GmbH and the responsible ministries of the transit countries were signed. The main elements of the PSAs are the affirmation of an advantageous regulatory transit regime under EU law; the protection of the NABUCCO Pipeline from potential discriminatory changes in the law; and support for legislative and administrative actions for the further implementation of the project. The Intergovernmental Agreement and the PSAs create the stable, long-term regulatory regime, which is required by the group of international lenders to secure the financing of one of the largest single gas transmission projects worldwide. This robust legal framework is a strong advantage of the NABUCCO pipeline. As a central component of the Southern Gas Corridor, NABUCCO is ideally placed to diversify gas supply to over 500 million potential customers in the growing economies of South Eastern Europe as well as onward into Western Europe.
Transgaz shareholders, convened in April to establish company's stake in Nabucco project
Transgaz company shareholders are convened on April 29-30 to establish the level of the company's take in Nabucco project, according to the Bucharest Stock Exchange (BVB) website.
The extraordinary general meeting of shareholders has on the agenda the approval of a range including the level of Transgaz's stake in Nabucco, corroborated with the company's funding possibility, between 15 percent and 20 percent, before the accession of potential investors to Shah Deniz consortium, and between 7 percent and 10 percent, after the accession of potential investors to the consortium, with the final percentage being subsequently approved by the shareholders, shows a company note remitted to BVB.Moreover, the shareholders will vote on giving a mandate to the company's general manager to sign the documents of the procedure for the amendment of Transgaz's stake quota.
Nabucco project has the purpose of diversifying the energy supply resources of the European Union, which is depended on Russia, by building a gas pipeline starting from the Caspian Sea and going around Russia.