April 27 (SeeNews) - Romania may start works on BRUA, an interconnector linking the gas networks of Bulgaria, Romania, Hungary and Austria, in June, a parliamentary committee head said on Wednesday.
The MPs will start a debate on a possible easing of the fiscal regime for oil companies next week, Iulian Iancu, president of the industry and services committee of parliament's lower chamber, also said.
"In May the MPs will begin drafting legislation on the quick expropriation of fields in which the pipeline will be built. In June, we hope to launch effective procedures for the implementation of the pipeline project," Iancu said during the Southeastern European Upstream conference in Bucharest.
In January, the European Commission said it will grant Romanian gas transmission company Transgaz [BSE:TGN] 179 million euro ($201 million) in support of the development of BRUA.
The project envisages the development of a natural gas transmission network with a total length of 550 km and a capacity of 1.5 billion cubic metres per year toward Bulgaria and 4.4 billion cubic metres per year toward Hungary. Its due for completion in 2019 and its cost is estimated at 560 million euro.
Iancu also said the MPs are committed to supporting the local oil companies whose performance has been severely affected by the sharp decline in global oil prices.
The difficulties that the Romanian oil companies are experiencing force them to cut investments and entail lower revenues to the state budget, he noted.
"Special situations require special measures, and in this situation now, Romania must back the industry," Iancu commented. Next week the MPs will discuss the royalties scheme, gas prices and other aspects of the fiscal regime for the oil industry, Iancu also said, adding that he is confident that next week some fiscal easing measures will be approved by the committee.
Earlier in March, the association of Romanian oil producers urged the government for a fiscal easing, including limiting the scope of a planned oil tax, saying this would encourage investments in the sector.
Since June 2014, oil prices have fallen more than 70% to $39 per barrel.
(1 euro = 4.4794 Romanian lei)
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