October 19 (SeeNews) - Romanian natural gas producer Romgaz [BSE:SNG] said on Wednesday it signed a memorandum of understanding with Azerbaidjan's national oil company SOCAR to explore the opportunity of jointly developing a liquefied natural gas (LNG) project in the Black Sea.
The project would consist of a natural gas liquefaction terminal and a regasification terminal as well as other installations and facilities necessary for transporting gas from the Caspian basin to Romania, Romgaz said in a statement filed with the Bucharest Stock Exchange, BVB.
In the current energy context, the initiative represents a new opportunity to ensure access for Romania and other countries in the region to natural gas resources in the Caspian Sea area, with a significant positive impact on the energy security of the countries of Central and Southeast Europe, Romgaz added.
The first step in the implementation of the project is a feasibility study for liquefaction and regasification facilities located respectively on the eastern and western coast of the Black Sea, to be financed by both companies, Romanian prime minister Nicolae Ciuca said in a live-streamed statement after the signing ceremony.
The aim of the joint investment is to diversify and supplement gas transport corridors from the Caspian Sea basin to Europe, Ciuca added.
"Today we are laying the foundations for a new energy transport corridor between the Caspian Sea and the Black Sea," Romanian energy minister Virgil Popescu said at the event.
In June, Popescu said that Romania was in talks with Azerbaijan for the diversification of oil and gas transport and supply routes and is interested in importing LNG, oil and petroleum products from the United Arab Emirates (UAE) in order to reduce its dependence on Russian fossil fuels.
In September, Moldovan deputy prime minister Andrei Spinu said his country is in talks with Romania and Azerbaijan on signing long-term natural gas supply contracts, fearing disruptions in deliveries from Russia after October.
Romgaz's shares traded 0.37% lower at 40.1 lei ($8/ 8.16 euro) on the BVB at 1614 CET on Wednesday.
(1 euro=4.9290 lei)
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