The Black Sea, although located on the border of the European Union, is becoming a central sea in terms of importance, being essential for the region's energy security, but also for the national security of the states.
The role of the Black Sea and the importance of the project Neptun Deep were the central themes of the program The New Economy, which was hosted by Florin Spătaru, State Advisor in the Prime Minister's Office, former Minister of Economy, and was moderated by Adrian Măniuuțiu and Daniel Apostol, Director General Federation of Oil and Gas Employers.
You can watch the recording here:
Production from the Neptun Deep project could start in 2027, and the new natural gas supplies could be a boon both for Romania's domestic consumption and for the chemical industry, which could see a major upturn.
Natural gas has an important role to play in the energy transition and in this new economy that is developing, which requires clean energy in significant quantities and at competitive prices.
The role of the state in developing large energy projects
The state has an essential role, both through its regulatory capacity, through legislation, but also by stimulating projects where the private component plays a role, but cannot support 100% these initiatives.
It's about the development of the whole gas transmission network, connectivity, all the bilateral or multi-country agreements that we need to ensure. Through these measures, the state can give what any private operator is asking for, which is predictability and transparency. Because we are talking about long-term strategies, we cannot judge in electoral cycles.
CCS and the role of the Black Sea
We have a problem with the NZIA, the carbon storage quota. The latest discussions have tried to mediate such a problem and not to have an obligation but a storage target. We have a major delay in generating this concept of carbon capture, transport and storage. We adopted the legislation in 2011.
What have we done by 2024? Absolutely nothing. We had a project, Getica, a relatively well done project, but which we did not fund. That would have been a pilot project that could have generated added value. The National Agency for Mineral Resources has published the amendment to the new law in a transparent decision-making process. We supported several pilot projects for carbon capture and storage precisely in order to generate this awareness that Romania will be able to capture carbon. The Black Sea, in turn, can store this carbon, which is an important competitive advantage.
The destination of natural gas from the Black Sea
Ideally, a good proportion of these gases to be found in the Romanian economy, in industry, and not in household consumption or energy production. This is also a very important component, but ideally it should be in value-added products such as the chemical industry. The chemical industry is the generator of a whole value chain. The latest INS study shows that detegent, a chemical product, is the main source of inflation. It generates an entire value chain, from the exploitation of the raw material, calcium carbonate, and throughout the processing chain.
Neptun Deep project must go ahead
It would be a big mistake to stop this project. This would affect not only Romania, but the whole European concept. Europe's energy transition cannot work without gas. Anyone who says that we will immediately find other solutions in an extremely short space of time is doing nothing other than creating another dependency for Europe.
The Black Sea is a balancing factor, both for domestic consumption and especially for the development of industry. We are talking about the chemical industry, which generates an entire value chain, but also a possible semiconductor industry. This sector is highly energy-intensive - both in production and in use - and also involves synergies with the chemical industry. The Black Sea is also a security factor, through the agreements that Romania signs with its Black Sea neighbors.
„In addition to the major projects that we have, we're going to have to look at the other advantages that we have in terms of transportation corridors, carbon storage, all the resources that we can have from this area.”
Florin Spătaru - State Counselor, Prime Minister's Chancellery
The NEW ECONOMY is a series of dialogues with specialists from the energy sector, from Authorities and Ministries, on the transformations triggered by the energy transition. These are technological but also economic changes, the imposition of higher and more costly environmental standards, and the possibility or impossibility of maintaining the competitiveness of certain branches of industry. Adrian Măniuțiu and his guests bring all these issues to the public's attention in a series that aims to inform, educate and dispel myths, in order to make the transition easier for Romania's citizens to understand, accept and go through.
