Federation of Oil and Gas Employers (FPPG) Welcomes the initiative European Commission to mitigate the effects of the exceptional increase in international energy prices, expected to last throughout the winter. At the same time, the FPPG expresses the hope that some of these recommendations will make it easier for millions of Romanians to get through a winter that is expected to be difficult in many ways.
Against the backdrop of the global crisis that is also affecting the energy sector in all European Union (EU) countries, the European Commission's Communication includes a set of measures that the EU and its Member States can take to manage the immediate impact of rising prices and to strengthen resilience to future shocks.
In line with the recommendations of the European Commission, the FPPG draws attention to the fact that the solution for our country to avoid such situations lies in the adoption of stable and predictable long-term energy policies that stimulate investment and, implicitly, domestic energy production.
In a balanced, stable and competitive legislative and regulatory context, Romania would have been much better prepared for the coming winter, with new energy sources in production today. An example in this respect is the natural gas projects in the Black Sea, which could have been started years ago, under an offshore legislative framework suitable for such large-scale investments. Unfortunately, despite the industry's efforts to communicate the specifics and benefits of gas projects offshore, the legislation in force (adopted in 2018) has blocked companies' planned investments and, consequently, the advancement of projects.
Natural gas from the Black Sea is Romania's only solution to secure its access to energy and to successfully go through the energy transition. Moreover, projects in the Black Sea can support the relaunch of some industrial sectors in Romania and would generate significant contributions to the state budget. Therefore, over the past months, FPPG representatives and partners have organized extensive discussions with members of the Romanian Parliament, managing to find political consensus on the urgency Black Sea gas projects, but also the need for clear provisions for fiscal and legislative stability, a balanced tax system and free market mechanisms.
The FPPG therefore makes the following appeal to decision-makers in this time of crisis:
Natural gas from the Black Sea is the solution for Romania's energy independence. Without these projects, it is estimated that gas imports could increase to 501TPTP7T by 2030.
Therefore, let us all try not to repeat the mistakes made in recent years. The companies are ready to start billion-euro projects to bring natural gas ashore for consumers.
We need this legislative framework today, tomorrow may be too late!
