Natural gas remains an essential fuel for the security of Romania's energy supply, both for current consumption and to achieve an optimal energy transition towards net-zero emissions by 2050, experts attending the three days of debates at the Romanian International Gas Conference (RIGC) 2021, an event organized by the Federation of Oil and Gas Employers (FPPG), with the support of Energy Policy Group.
Romania can be a strategic country for the European Union, with gas from the Black Sea, in the context of the energy transition. But it all depends on our authorities and how quickly they take the decision to amend the Offshore Law, which would allow investors to exploit the reserves already discovered deep underground, says Cătălin Niță, Executive Director, FPPG.
High potential for hydrogen production
The first day of the debates focused on the transition to a green hydrogen economy and the role of blue hydrogen in this process. Romania can become a «blue hydrogen valley» in Europe, i.e. an important pillar in the development of this technology of the future, thanks to the natural gas resources we have, our country's location with its Black Sea opening and its high potential for storing carbon dioxide.
Romania has huge potential to become a major European producer of blue hydrogen if we extract natural gas resources from the Black Sea, says Ionuț Ciubotaru, Vice President for Business Development, OMV Petrom.
Sustainable energy transition
On the second day of the conference, the experts present emphasized the importance of natural gas in Romania's energy transition. This process would be extremely expensive for Romania if we did not have the resources that we have both onshore (on land) and offshore (in the Black Sea). Under these circumstances, we should be aware of the privilege we have as a country and use them intelligently to make an optimal transition, with benefits for the state budget and for consumers, for whom the „green” transformation of the economy must be bearable.
What does Romania's energy future look like and what role do the natural resources we have play? Natural gas, for example, can be the ace up our sleeve, but it can also lead us down the economic drain if we don't exploit it, he said. Mihnea Cătuți, Head of Research, EPG.
To succeed in the energy transition, we need a determined development in the right direction, not a chaotic one. For the foreseeable future, natural gas will remain an efficient substitute for more polluting sources of energy production such as coal. Even for domestic heating, there is still no credible and affordable alternative to natural gas.
From import dependence to gas independence
Rising energy prices and security of gas supply were the topics discussed on the third day of the conference.
Thus, although Romania has so many natural gas resources, they remain untapped. In this context, we are dependent on gas imports, and since 2019 we have also become dependent on electricity imports, for an even relatively low consumption.
By exploiting offshore resources, Romania has the chance to become the largest producer of natural gas in the European Union. On the other hand, a legislative framework is urgently needed to support investors, who already feel the window of opportunity for gas is closing as time goes by, says Franck Neel, Executive Board, Downstream Gas Division, OMV Petrom.
Making the most of our own resources is all the more important in the context of the energy price crisis we are all going through globally. Therefore, now is the best time to start production in the Black Sea, with offshore extraction being one of the solutions to the energy crisis.
4th international conference Romanian International Gas Conference was held in Bucharest, in hybrid format, on December 13-15, 2021, under the theme „The natural gas sector, between decarbonization imperatives, affordability and security of supply”.
