OMV Petrom, Romgaz and Transgaz Have Signed the Contracts for Black Sea Gas Transmission

OMV Petrom, Romgaz and Transgaz have signed the contracts for taking over the Black Sea gas into the National Transmission System, through the Tuzla NTS entry point. The contracts, which were initialled by Transgaz CEO Ion Sterian, OMV Petrom CEO Christina Verchere and Romgaz CEO Razvan Popescu, are valid for the period September 2026 – September 2042. The cumulative value of the commitments of the successful applicants is RON 2.82 billion. The contracts were signed after the successful completion of the incremental capacity booking process for the Tuzla entry/exit point into/from NTS.

“Transgaz is ready to build this gas pipeline under the same conditions of safety, efficiency and performance that it meets every time, with every investment. We are ready to hand over, starting with March 27, 2023, the site to the winner of the tender for the construction of the gas pipeline, which will last until April 20-25, 2023, depending on weather conditions, to carry out our mission of ensuring Romania’s energy independence and we will fulfil our obligations to the Romanian state authorities and our international obligations with professionalism and dedication,” Transgaz CEO Ion Sterian stated on this occasion.

 

Strategic investment

Currently estimated to cost around EUR 478 million including VAT, the gas pipeline project consists of the construction of a 308.3 km long Tuzla – Podisor gas transmission pipeline, which will link the natural gas resources available on the Black Sea coast to the BRUA corridor.

For this strategic investment, Transgaz has applied for grants from the Modernisation Fund, together with other five gas transmission infrastructure projects. Through this investment, the interconnection with the Trans-Balkan corridor, a corridor for which reverse flow on the Romanian territory is ensured and also the connection to the Vertical Corridor of which the BRUA pipeline is part, is achieved. It creates a connection between new sources of natural gas from the Black Sea and the Caspian Sea basin with the Trans-Balkan Corridor and the Vertical Corridor.

“After the successful completion of the BRUA, after the successful completion of the Ungheni-Chisinau gas pipeline, after the completion of the works allowing the international transmission of natural gas in reverse-flow regime at all interconnection points and after starting the exploitation of Black Sea gas from shallow blocks, we are now at the starting line of the Tuzla-Podisor gas pipeline, which will allow the natural gas exploited by OMV Petrom and Romgaz from the Black Sea to reach the National Transmission System and, implicitly, every locality in Romania that has access to the natural gas network,” Transgaz CEO Ion Sterian said.

 

New investments prepared by Transgaz

For the development of the gas transmission infrastructure in Romania, Transgaz has undertaken, through the 10-year Development Plan for the National Gas Transmission System (TYNDP), an extensive investment programme, with investment projects estimated at approximately EUR 3.2 billion that will bring the NTS in line with European transmission and operating requirements and those of the European Green Deal on decarbonisation. Transgaz is concerned with expanding and upgrading existing infrastructure through the potential of integrating hydrogen from renewable and low carbon sources into the gas transmission system. To this end, the company has signed with the European Investment Bank (EIB) an Agreement for the provision of advisory services to prepare and develop a strategy to decarbonize Romania’s gas transmission network. TYNDP 2022-2031 was approved by ANRE by Decision No 1944/01.11.2022 and is posted on the company’s website.

Among the major projects, we can mention mainly: BRUA Phase II; Development of the Southern Transmission Corridor in Romania to take over natural gas from the Black Sea coast; Expansion of the reverse-flow transmission corridor Bulgaria – Romania – Hungary – Austria (BRUA-Phase III); Development-Modernization of the gas transmission infrastructure in the North-West of Romania; Increasing the gas transmission capacity of the Romania – Bulgaria interconnection on the Giurgiu – Ruse direction; Romania – Serbia interconnection; Development of the SCADA system for the National Gas Transmission System; Modernisation of the Isaccea 2 and 3 and Negru Voda 2 gas metering stations and with a view to achieving reverse flow on the T2 and T3 pipelines respectively.

Also, at Transgaz’s initiative, a Memorandum of Understanding for the regional development of a hydrogen network was signed in April 2022 between the gas transmission and system operators (TSOs) of Romania (Transgaz), Poland (Gaz-System), Hungary (FGSZ) and Slovakia (Eustream), with the initiative also open to other transmission and system operators.

 

Projects of national interest

In addition to the major projects mentioned above, the Modernisation and Development Investment Programme for 2023 and the estimates for the period 2024-2025 also include investments in the development of the NTS in accordance with the provisions of the updated Law 123/2012, with an estimated value of EUR 536 million, investments to ensure the extension of the National Transmission System in areas with newly established distribution systems. Some of these are declared projects of national importance: Sighetu Marmatiei – Borsa gas transmission pipeline (accepted); Prunisor – Orsova – Baile Herculane – Jupa gas transmission pipeline; Lugasu – Huedin gas transmission pipeline; Ghergheasa – Focsani gas transmission pipeline; Tetila Horezu – Ramnicu Valcea gas transmission pipeline; Ghercesti – Jitaru gas transmission pipeline; gas transmission pipeline for supplying CET Mintia.

Other investment works are: Tg. Neamt – Baltasesti gas transmission pipeline, Neamt County; Deta – Moravita gas transmission pipeline, Timis County; Vernesti – Maracineni – Posta Calnau gas transmission pipeline, Buzau County, Stage II – Maracineni – Posta Calnau; Vladimirescu – Lipova gas transmission pipeline; Segarcea – Bailesti – Calafat gas transmission pipeline; Natural gas supply to the town of Borsec; Natural gas supply to the localities on the Moinesti – Asau and Mihaileni – Lunca de Sus consumption routes, located in the ‘Trotuș Gaz Palanca’ Intercommunity Development Association (IDA) area, Bacau and Harghita Counties; Natural gas supply to the localities on the Scanteia – Deleni and Petresti – Costuleni consumption routes, located in the ‘Plaiurile Jijiei’ IDA area, Iasi County; Natural gas supply to the localities of Praid, Lupeni, Corund and Atid, located in the Gordon Tarnava IDA area, Harghita County; Gas transmission pipeline DN 400/DN 300 Timisoara I RMS – Timisoara III RMS; Gas transmission pipeline DN 500 Plataresti – Balaceanca; Gas transmission pipeline DN 250 Techirghiol – Ovidiu; Gas transmission pipeline DN 600 Mihai Bravu – Silistea.