Romgaz, OMV Petrom and BSOG Sue European Commission Over CO2 Storage Quotas

Romania’s largest natural gas producer Romgaz has filed an action with the Court of Justice of the European Union (CJEU) against the European Commission. The company requested the annulment of certain regulations that impose CO₂ storage quotas on oil and gas companies.

Through this action, Romgaz is primarily seeking the repeal of Delegated Regulation No. 1477/2025 supplementing Regulation (EU) 2024/1735 of the European Parliament and of the Council and the annulment of Commission Decision (EU) 2025/1479 of 22 May 2025 specifying pro-rata contributions to the Union CO₂ injection capacity objective by 2030 from oil and gas producers in the European Union.

Regulation (EU) 2024/1735, also known as Net-Zero Industry Act (NZIA), supplemented by the two pieces of legislation whose repeal is requested by Romgaz, imposes oil and gas producers in the European Union to provide by 2030 a 50 Mtpa CO₂ storage capacity.

Injection capacity obligation of Romanian companies accounts for more than 20% of the EU injection capacity objective considering that our country is responsible for only 3%, roughly speaking, of the total CO₂ emissions generated by EU manufacturing sector between 2020-2023.

As such, Romgaz decision to file a direct action against the European Commission was taken in consideration of the fact that legislative acts challenged in court introduce significant disproportion and uncompetitive behaviour on the oil and gas market to the disadvantage of EU producers.

Last but not least, the contribution obligation established for Romgaz and other oil and gas producers means significant investments without any underlying economic feasibility conditions or other adequate guarantees.

“As main natural gas producer in Romania, Romgaz fully undertakes its strategic role and related responsibilities – both in continuously ensuring safety of natural gas supplies and in efforts towards industry decarbonisation and transition to green energy. In this context, the company reviewed and analysed multiple scenarios and options to reduce the carbon footprint and to implement green projects, for defining the best path towards reaching decarbonization targets set under the Paris Agreement. Among the reviewed options there are investments in CO₂ storage in depleted natural gas reservoirs and in saline aquifers. Moreover, Romgaz carried out detailed technical studies and assessments to identify potential reservoirs and to assess the feasibility of transforming them into CO₂ storage. We remain firmly committed to implementing European Union policies, including the Green Deal, as well as new objectives on competitivity and economic recovery set this year. However, Romgaz will not get involved in projects that do not comply with market rules, that involve major operational risks or that might prejudice the company, its shareholders or the Romanian state. We believe that the Delegated Regulation (EU) 2025/1477 supplementing Regulation (EU) 2024/1735 of the European Parliament and of the Council, as well as Commission Decision (EU) 2025/1479 of 22 May 2025 expose the company to such risks; consequently, we decided to use all available legal means and we will challenge these legislative acts before European courts,” Romgaz CEO Razvan Popescu stated.

“On October 16, 2025, Romgaz filed a direct action against the European Commission at the European Court of Justice. This is the first time the company has taken such an action, generated by the severe implications of NZIA regulation, Commission Delegated Regulation 2025/1477 and Commission Decision (EU) 2025/1479 of 22 May 2025 on the company and more than that, I say it directly, on consumer’s bearability of the price paid for goods produced by companies/factories etc. which includes CO2 capture, transportation and injection measures. Inevitably, the cost of such products will increase, in my opinion, beyond the limit of bearability. And when I say severe implications, I am also referring to economic risks, considering that we are required to make investments of several hundred million Euros without actual guarantees on the return on investment, as well as to technical and environmental risks. To be noted that few implemented or under development CO₂ storage projects are in offshore reservoirs, eliminating the risk of contaminating the soil or the waters in inhabited areas in the event of potential migrations. There are European states that, for this reason, have prohibited storage of CO₂ in onshore reservoirs by law. And last but not least, I would like to highlight that this is the first time that the European Parliament/Commission, by means of an European regulation/delegated regulation/decision, directly imposes obligations, including monetary obligations, to companies which are subjected to corporate strictness and to the rules of the commercial markets on which they operate, without a prior technical and economic impact study showing the technical and economic feasibility in relation to the imposed obligations. Nevertheless, we are willing to fully cooperate with the European Commission and Parliament to find the best technically and economically feasible solutions based on all the impact studies carried out prior to the issuance of such regulations to ensure a sustainable future for the company, the environment and for the end customers,” Romgaz Deputy CEO Aristotel Jude added.

After Romgaz, OMV Petrom and BSOG (Black Sea Oil and Gas), the other two major hydrocarbon producers in Romania, have also challenged in court the European Commission’s decision that obliges them to ensure carbon dioxide storage capacity.

OMV Petrom and BSOG registered their appeals on October 15, according to CJEU data. Romania is entitled to a quota of 10.25 million tons/year, of which 5.88 million tons/year are borne by OMV Petrom, 4.12 million tons/year by Romgaz and 250,000 tons/year by BSOG. A 2023 study assessed the costs of similar projects in Europe in the range of 70 euros – 250 euros/ton, which would raise the costs imposed on Romanian companies to 0.4-1.47 billion euros in the case of OMV Petrom, 0.29-1 billion euros in the case of Romgaz and 17.5 -62.5 million euros in the case of BSOG. Romgaz argued that the NZIA Regulation induces significant disproportionality and an anti-competitive practice on the oil and natural gas market, to the detriment of EU producers, and that the obligation imposed by it requires significant investments without these being conditioned by the existence of economic feasibility conditions or exigible guarantees.