Romanian state gas producer to invest EUR100m in onshore gas exploitation

The state-controlled gas producer Romgaz will invest EUR100m more in a gas exploitation project where it already has invested EUR40m, the company’s management announced. The gas deposit is in the southeast region of Romania. Romgaz intends to build more infrastructure and drill new wells in the perimeter, which would require new hiring.

The gas deposit is estimated to be the largest onshore gas discovery in Romania, with a capacity that might cover the national gas consumption for 2-3 years (27-30 bcm), according to previous declarations of the energy ministry. Romgaz already started exploitation in the deposit and delivered some volumes in the system this year, even if the initial estimations pointed works to start in 2019.

We note that gas production in another major gas deposit should start in the next several years, but in the Black Sea deep waters, where ExxonMobil and Petrom made a major gas discovery in 2012. The initial information stated that the deposit’s size might be of around 42-84 bcm. Exploitation in both major gas deposits is dependent on the BRHA gas pipeline project that would transport gas from Romania to Bulgaria, Hungary and Austria.

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