Romania's Transgaz launches incremental capacity process for Black Sea natgas entry point

The conclusion of capacity booking contracts and firm commitments before starting the actual investment provides the guarantee that the new capacities are to be used efficiently and that the project implementation will not lead to the increase in the transmission tariff in Romania, the company said in an annual financial report filled with the Bucharest Stock Exchange.

Transgaz carried out an incremental capacity process for an entry/exit point in Tuzla in 2018, which was completed with allocation of capacity and the company concluded transmission contracts for a period of 16 years. However, contracts were terminated and participants paid penalties, Transgaz said without elaborating.

On Wednesday, Transgaz said it received a request for incremental capacity for an entry/exit point to/from the National Gas Transmission System (NTS), expected to be created in the area of Tuzla, Constanta county, with the aim of transporting natural gas which is to be extracted from the Black Sea.

In November, Romanian president Klaus Iohannis called on oil and gas group OMV Petrom [BSE:SNP] to speed up the search for hydrocarbons in the Black Sea under the offshore project Neptun Deep.

OMV Petrom holds 50% of rights and obligations under the XIX Neptun Deep Block concession. The company entered a joint venture with ExxonMobil for exploration of the block in 2008. The block covers an area of some 7,500 sq km in water depths ranging from 100 to 1,700 meters, according to information posted on OMV Petrom's website.

On August 1, Romgaz completed the acquisition of Exxon Mobil's 50% stake in Neptun Deep for $1.06 billion (1 billion euro).

Transgaz' shares traded 2.50% higher at 286.5 lei ($62/58 euro) on the Bucharest Stock Exchange as at 1457 CET on Friday.

OMV Petrom traded flat at 0.4655 lei on Friday at 1502CET, while Romgaz shares traded up 0.25% to 40.6 as at 1459CET on the BVB.

(1 euro=4.9211 lei)