Romanian gas field as a new ally of Serbia: Exit dependence on Russian gas – Economy

The interlocutors of Danas say that Romanian gases could be a good alternative to Russian gas.

They believe that Romania has enough gas to satisfy Serbian needs and replace Russian gas in good work. They also claim that the Romanian gas, due to the proximity, could be cheaper than Russian who, to reach Serbia, a few thousand kilometers must pass through several countries to pay tariff for transit.

Serbia is determined to connect with the gas pipeline with Romania, which is official in August last year by signing Memorandum of understanding of the construction of this gas pipeline.

The plan is to be connected by the pipelines from the Serbian Mokrin and Romanian Arad in length of about 100 kilometers.

Then said the gas pipeline with Romania will provide another natural gas supply direction, connecting the hub in Mokrin in Serbia with the regional transport gas pipeline of Bru (Bulgaria-Romania-Hungary-Austria) in Romania.

This means that in Serbia, in addition to Russian gas that arrives Turkish during, azebaijan gas, which is delivered by Bulgaria’s recently built with Bulgaria, and which will arrive LNG gas from the Greek terminal in Alexandropolis, in a few years, Romanian gas arrives in a few years.

This shows that Serbia is serious in order to solve the Russian gas monopoly, and the idea was initiated by the energy crisis in Ukraine, which was due to the main supply of gas supply – Turkish stream, several times in danger of terminating delivery.

« The best gas option in the past 20 years »

Energy analyst Aleksandar Kovačević said for today that the idea of ​​connecting the gas systems of Serbia and Romania there are more than two decades.

According to him, this gas pipeline was scheduled as a priority project during the reconstruction of the Energy Sector after the war in 1999. years.

« Then the gas pipeline of Mokrin – Arad was entered in key strategic documents of international financial institutions in 2003. » said Kovacevic.

He emphasized that gas supply from Romania has been standing as one of the most effective options for gas supply not only Serbia, but also the region.

As reasons, Romania has resources to produce and storage gas, which are now among the most important on the European continent.

« Services of these resources for Serbia are certainly favorable from imports that involves the payment of transit through third countries and long distances, » Kovacevic said.

Our interlocutor also pointed out that these available resources for production and storage in Romania are sufficient to cover all existing gases in Serbia, but also in Bosnia and Herzegovina, to take into account that existing consumption in our country is very low efficiency and requires serious improvement.

Another positive side in this gas pipeline is that the construction terrain is also a beneficial building to be completed quickly, in just a few months, Kovacevic added.

Energy analyst Velimir Gavrilović points out that the story of the construction of the gas pipeline between Serbia and Romania again came to the focus due to the current geopolitical situation, primarily from the war in Ukraine and problems in gas supply across Europe. He especially reminded that Serbia is currently connected to the Turkish course, a gas pipeline that brings Russian gas below the Black Sea, through Turkey, to Serbia.

According to him, any new gas connection, including this with Romania, contributes to the varnishes of sources and supply routes, which significantly increases energy security.

Gavrilović stated that more options mean higher resistance to crises and pressures, both economic and political, characterized by a modern energy world.

It reminds that Romania has access to Caspian gas basin, which includes sources from Azerbaijan and Russia, but for the Romanian gas from the Black Sea for Serbia.

« What could bring newspaper and advantage, it is a new and additional source of Serbia’s supply. In this context, the gas pipeline that would associate Serbia and Romania received additional value because it could contribute to the price competition, » said Gavrilović.

In addition, Romania has access to LNG terminals, but notes that LNG gas (liquid natural gas arriving in ships over the ocean) much more expensive – and up to three times – in relation to pipeline gas.

About the gas pipeline between Serbia and Romania

As we have already mentioned, a memorandum of understanding of the construction of the gas pipeline between Serbia and Romania was signed in August last year.

How is stated On the Ministry of Mining and Energy, the idea is that the pipelines are connected by Serbian Mokrin and Romanian Arad in length of about 100 kilometers. Length on the territory of Serbia is 13 kilometers, and in Romania territory is 86 kilometers. It has been announced that the Serbian side will be completed by 2027. years.

The planned capacity of the gas pipeline is 1.6 billion cubic meters, which is half of what Serbia spends currently. The annual gas consumption in Serbia is about three billion cubic meters of gas. Most of that gas arrives from Russia. Serbia 2.2 billion cubic meters Gas received from Russia per long-term contract and a more favorable price, and the remaining 800 million cubic meters from Azerbaijan or buys on the stock exchange.

The construction of the gas pipeline will cost Serbia, as discussed when signing the contract, about 12 million euros.

It is four times more than the price mentioned in 2017., according to the first conceptual project (which envisaged that the gas pipeline is 20 kilometers), and three million euros more than 2019. Year when the conceptual design was changed.

The total value of investment 2017 years, according to the first conceptual plan, is estimated at 43m euros, so 37 million euros costs construction on the territory of Romania, three million euros in the territory of Serbia and three more euros for the gas measuring station.

According to another conceptual plan in 2019. That about 85 kilometers of gas pipelines are in Romania and 15 kilometers in Serbia, the value of the project climbed to 51 million euros, so 42 million euros are the Romanian cost, and about nine million Serbian.

The « Neptune Deep » project keeps 100 billion cubic meters of gas

Romanian Ministry of Energy said at the end of March That the drilling of the first well from a total of ten planned within the « Neptune Deep » site in the Black Sea, the largest project for exploitation of natural gas at sea.

« This key step closer to our country strategic goal of strengthening energy independence and confirming its central role in the region’s energy security », stated from the Romanian ministry.

They pointed out that Neptune Deep, located at more than 160 kilometers from the shore of the Black Sea, contains estimated reserves of over 100 billion cubic meters of natural gas.

The project develops ROMGAZ and OMV Peter and represents the most significant investment in the Romanian energy sector, with an estimated budget of about four billion euros.

Drilling all ten wells will take place gradually, and the first quantities of gas are expected in the national network starting in 2027. Years.

When it reaches a full capacity, « Neptune Deep » will produce about eight billion cubic meters per annum, doubling domestic production and converting Romania in net natural gas exporters in the region.

« Romania is already taking the first place in the European Union, with an annual scope of about nine billion cubic meters, and the exploitation of Neptun Deep will further strengthen this position from external sources, » said Minister of Energy Romania Sebastian Burduja.