sharing the energy of knowledge

Romania

Table of Contents
  1. 1. Introduction
  2. 2. Key statistics
    1. 2.1. Unconventional gas
  3. 3. Gas demand
    1. 3.1. Total Primary Energy Consumption by Fuel
    2. 3.2. Gas demand by sector
  4. 4. Gas supply
    1. 4.1. Gas reserves
    2. 4.2. Exploration & Production
    3. 4.3. Imports & Exports
  5. 5. Gas infrastructure
    1. 5.1. Gas grid
    2. 5.2. LNG
    3. 5.3. Storage
  6. 6. Gas market regulation
    1. 6.1. Upstream
    2. 6.2. Networks
    3. 6.3. Downstream

1. Introduction

Romania is situated in the southeastern-central part of Europe and is bordered to the north by the Ukraine; to the east by Moldova; to the south by Bulgaria; and to the west by Hungary and Serbia. Romania has a total surface of 238,391 square kilometers (92,043 square miles) and is inhabited by approximately 19 million people (2011 census), making it the seventh largest population among member states of the European Union. The country has a yearly GDP (PPP) of USD 267.15 billion (2011 estimate) and a GDP (PPP) per capita of $12,476. In nominal GDP, these figures amount to USD 189.78 billion and $9,988 respectively. 75% of Romania’s gas reserves are located in Transylvania, especially in the counties of Mures and Sibiu. Romania’s largest gas field is the Deleni gas field situated in Mures county. The Deleni filed was discovered in 1912 and holds 85 Bcm of proven reserves. Other important gas fields in the country are Filitelnic – 40 Bcm, Roman-Secuieni - 24 Bcm and Voitinel – 11.8 Bcm. [1] Romania has a significant natural gas reserve of 595 bcm at the end of 2010. [2]  

edit top


2. Key statistics

Basic gas facts - Romania
Basic Gas Facts 2006 2007 2008 2009 2010e
Gas reserves (bcm) .. .. .. 606 595
Gas production (mcm) 11942 11523 11369 11252 10959
Gas consumption (mcm) 18128 16083 16002 13257 14649
Gas imports (mcm) 6013 4851 4432 2006 2271
-imports pipeline (mcm) 6013 4851 4432 2006 2271
-imports LNG (mcm)          
Import dependency (%)* 33.17% 30.16% 27.69% 15.13% 16%
Gas exports (mcm)          
Natural gas supply per capita (toe) .. .. .. .. ..
Technically recoverable shale gas resources (bcm) .. .. .. .. ..
Coal Bed Methane reserves (bcm)** .. .. .. .. ..
c = confidential; - = nill; ..= not available
* Imports dependency of natural gas = (imports - exports) / consumption
**Proven & Probable (2P); U.S. Environmental Protection Agency, Coalbed Methane Outreach Program
Sources: Natural Gas Information © OECD/IEA, 2011, EIA Analysis & Projections, GMI/EPA Coal Mine Methane Country Profiles

[1], [2], [3]

Basic energy facts - Romania
Basic Energy Facts 2006 2007 2008 2009 2010e
Total Energy Consumption (mtoe) 40.56 37.54 38.50 33.98 34.49
CO2 emissions, energy-related (Mt) 101.66 101.003 96.014 80.01 ..
CO2 intensity, energy-related (tCO2/toe) .. .. .. .. ..
Energy consumption per capita (toe/cap) 1.95 1.94 1.92 1.67 ..
CO2 per capita, energy-related (tCO2/cap) 4.59 4.56 4.35 3.64 ..
c = confidential; - = nill; ..= not available
Source: BP Statistical Review June 2011 & EIA International Energy Statistics

[1], [2], [4]

edit top


2.1. Unconventional gas

Shale Gas

Two prospective shale gas basins include the Pannonian-Transylvanian Basin in Hungary and Romania, and the Carpathian-Balkanian Basin in Southern Romania and Bulgaria. These basins are not yet assessed though. But Romania, Hungary, and Bulgaria together are estimated to hold about 539 bcm of shale gas.

The Pannonian-Transylvanian Basin is a large, Neogene-age, extensional basin covering a 200,000 square kilometres (124,000 square miles) area largely inside of Hungary, Romania and Slovakia. For this basin, shale gas potential is being investigated by one firm in northern Romania, but geologic data on their lease concessions is not publically available. The Carpathian-Balkanian Basin is a geologically complex basin composed of a series of mountain nappes, foredeeps and plains in Southern Romania and Bulgaria. Another area that borders the Carpathian-Balkanian Basin, the Moesian Platform, may prove to have prospective areas for shale gas development as well. In July 2010, Chevron reported that it secured three shale gas exploration blocks in the Romanian portion of the Carpathian-Balkanian Basin, totalling 675,000 acres. [1]

Coalbed Methane

Galaxy Energy Corp had been planning for years to evaluate a 21,538-acre concession held in the Jiu Valley. 13,715 acres of the concession have coalbed thicknesses greater than 5 m and are currently considered to be prospective for coalbed methane (CBM) production. The area contains 18 coal seams with a cumulative thickness up to 50 m at depths of between 300–1,000 m, and the main target seam averages 22 m in thickness. These exploratory wells were to be in close proximity to earlier wells that had located gas. The test wells would also have been less than 3 kilometers (2 miles) from a 20-inch gas trunk pipeline, and in close proximity to an electrical generation plant that uses both natural gas and coal as fuel. However, in March 2008, Galaxy Energy filed for bankruptcy protection; the status of its exploration activities is unknown. [2]  

edit top


3. Gas demand

edit top


3.1. Total Primary Energy Consumption by Fuel

In 2010, Romania’s Primary Energy Consumption amounted to 34.6 mtoe, a 1.8% increase compared to 2009. In 2010, oil accounted for 9.1 mtoe, while coal and gas accounted for 6.2 mtoe and 12 mtoe respectively. Hydro and Renewables accounted for 4.6 mtoe and 0.1 mtoe respectively.

*other: renewables, nuclear, hydro

[1]

*other: renewables, nuclear, hydro

[1]

edit top


3.2. Gas demand by sector

From current sources used it is only known that 3,618 mcm was used for transformation (electricity generation) in 2009. [1]

edit top


4. Gas supply

edit top


4.1. Gas reserves

Romania holds 595 bcm of gas reserves, the 3rd largest natural gas reserve in Europe (after Norway and the Netherlands) and the 30th worldwide. According to Cedigaz, Romania’s natural gas reserves represent approximately 0.31% of the world total reserves. [1] The reserves-to-production ratio* for Romania is 54.4 years, significantly higher than the EU’s average R/P-ratio of 14 years.[2]

*Reserves-to-production (R/P) ratio – If the reserves remaining at the end of any year are divided by the production in that year, the result is the length of time that those remaining reserves would last if production were to continue at that rate.  

edit top


4.2. Exploration & Production

In 2010, Romania produced 10,959 mcm of natural gas, 293 mcm less than in the previous year and almost three times less than in 1973 when it produced 30,069 mcm of natural gas.

edit top


4.3. Imports & Exports

In 2010, Romania imported 2,271 mcm of natural gas representing 15.5% of its domestic consumption. All of Romania’s gas imports are being accomplished via pipeline, so far there are no LNG imports. The proportion of imported gas in Romania’s consumption decreased from 30.2% in 2007 to 15.5% in 2010. The vast majority of the gas pipeline imports originate from Russia. In 2010, all of Romania’s gas imports originated from Russia while in 2009, Romania had imported 1.35% of its gas from Turkmenistan (the rest came from Russia). No exports take place.

Imports by country - Romania
By country of origin (in mcm) 2006 2007 2008 2009 2010e %Total Imports 2010
Russia .. 4428 4321 1979 2271 100%
Turkmenistan ..   111 27    
Uzbekistan .. 223        
Other .. 200        
Total 6013 4851 4432 2006 2271 100%
%Total Consumption .. 30.16% 27.70% 15.13% 15.50%  
c = confidential; - = nill; ..= not available
Source: Natural Gas Information © OECD/IEA, 2011

[1]

Imports by transport type - Romania
By transport type (in mcm) 2006 2007 2008 2009 2010e %Total 2010
Pipeline imports 6013 4851 4432 2006 2271 100%
LNG imports            
Total 6013 4851 4432 2006 2271  
%Total Consumption 33.17% 30.16% 27.70% 15.13% 15.50%  
c = confidential; - = nill; ..= not available
Source: Natural Gas Information © OECD/IEA, 2011

[1]

edit top


5. Gas infrastructure

edit top


5.1. Gas grid

Pipelines

The total length of the transmission system network is about 13,000 km, with a total compressing power of 30MW. The whole pipeline system is operated by S.N.T.G.N Transgaz SA. (see section 6). In 2009 Transgaz transported 153,069 GWh of energy. There are nine inter-TSO connections where capacity is marketed: one at the border with Hungary, five at the border with Ukraine, and three at the border with Bulgaria. There are 229 directly connected customers of which 15 are gas-fired power plants with a total gas-fired power generation of 3,084 MW. There are 149 entry points through which the domestic gas enters the national transmission system, most of them from SNGN Romgaz (93) and OMV Petrom (49). Furthermore there are 827 physical transmission-distribution network connections and there are 38 Distribution System Operators (DSOs) active in the country. [1]

Gas Infrastructure Projects

Romania, more specifically Transgaz, momentarily has own gas infrastructure project running according to the Ten Year Network Development Plan of ENTSOG: a interconnection with Bulgaria (see table). It has to be noted that Transgaz is also the Romanian partner in the Nabucco project (see www.nabucco-pipeline.com). [1]

Infrastructure proposed - Romania
Project Type Sponsors Total Length (km) Diameter (mm) Technical Cap. Pipes** Power of CS(s) (MW)*** Sources Expected Benefits
Romania-Bulgaria Interconnection Pipeline (incl. CSs*) Transgaz 25 500 Exit: 2, Entry: 2.8 .. .. Diversification of sources, routes and supplies; country interconnectivity; safety, reliability, interoperability of networks; bi-directional gas flows; establishment of South-Eastern European regional gas market
*compressor station
**mcm/day
***absorbed power
****Security of Supply
Source: ENTSOG Ten Year Network Development Plan 2011-2020

[1]  

edit top


5.2. LNG

At the end of August 2011 there were no operational LNG terminals in Romania. However, there is one regasification terminal proposed by Romgaz which will have a projected output capacity of 3-8 bcm of gas per year.

LNG - Romania
LNG - Romania                    
Site Storage   Regasification   Owner Operator TPA Start-up Source Status
  #Tanks Cap.* #Vaporizers Cap.**            
Constanta .. .. .. 3-8 Romgaz Romgaz .. .. .. P
c = confidential; - = nill; ..= not available
E = existing; U = under construction; P = proposed
* capacity in m3 x1,000 of LNG
**nominal capacity in bcm/year of gas
Source: Gas Infrastructure Europe: GLE LNG Map 2011

[1]

edit top


5.3. Storage

At the end of 2010 there were 8 operational storage facilities in Romania with a cumulated technical storage capacity of 2,694 mcm. All these facilities are based on depleted gas fields and TPA is regulated for all of them. [1]

Storage existing - Romania
Nr. Facility name Operator Storage Capacity (mcm) Withdraw (mcm/day) Injection (mcm/day) TPA* Type
1 Tirgu-Mures DEPOMURES 300 2 2 R Depleted Gas Field
2 Nades-Prod-Seleus AMGAZ 50 0.27 0.27 R Depleted Gas Field
3 Sarmasel ROMGAZ 680 .. .. R Depleted Gas Field
4 Cetatea de Balta ROMGAZ 150 .. .. R Depleted Gas Field
5 Bilciuresti ROMGAZ 1190 .. .. R Depleted Gas Field
6 Urziceni ROMGAZ 200 .. .. R Depleted Gas Field
7 Ghercesti ROMGAZ 81 .. .. R Depleted Gas Field
8 Balaceanca ROMGAZ 43 .. .. R Depleted Gas Field
Total     2694 2.27 2.27    
TPA: Regulated (R) - Negotiated (N) - Hybrid (H) - Not Applicable (X)
Source: Gas Infrastructure Europe: GSE Storage Map 2011

[1]

In addition to the existing storage capacity, there are expansions planned for two facilities: the one at Nades-Prod-Seleus and the one at Tirgu Mures. Also a new facility is planned by Romgaz at Roman-Margineni, which will have a storage capacity of 1,600 mcm. In the table below one can see the end result of all of these projects. [1]

Storage proposed - Romania
Nr. Facility name Operator Storage Capacity (mcm) Withdraw (mcm/day) Injection (mcm/day) TPA* Type
1 Tirgu-Mures DEPOMURES 300 4 4 .. Depleted Gas Field
2 Nades-Prod-Seleus AMGAZ 250 2 2 .. Depleted Gas Field
3 Roman-Margineni ROMGAZ 1600 .. .. .. Depleted Gas Field
Total     2150 6 6    
TPA: Regulated (R) - Negotiated (N) - Hybrid (H) - Not Applicable (X)
Source: Gas Infrastructure Europe: GSE Storage Map 2011

[1]

edit top


6. Gas market regulation

edit top


6.1. Upstream

In 2011, there were 6 major production companies in Romania: SNGN Romgaz, OMV Petrom, Wintershall Holding, Amromco Energy, Aurelian Oil & Gas and Lotus Petrol. [1]

edit top


6.2. Networks

The only Transmission System Operator (TSO) is the state-owned National Natural Gas Transmission Company SNTGN Transgaz SA. This TSO is acting as a transmission and transit company and as market operator. Transgaz was founded in the year 2000 following the restructuring of the National Gas Company ‘Romgaz SA’ through the legal unbundling of the downstream, midstream, upstream and storage activities. The legal, operational and organizational unbundling of the gas transmission activity was accomplished in 2007 according to the Directive EC/2003/55, which was translated in the Romanian Law 351/2004. Transgaz has as its main objectives the transmission of gas across Romanian territory, this being a regulated activity, and the transit through dedicated pipelines, being a non-regulated activity. Once a year and every four years a well, Trangaz presents to the National Agency of Mineral Resources (ANRM) and to the National Energy Regulation Authority (ANRE) its minimum investment plan. [1] There is regulated TPA and the "revenue-cap" methodology is applied to establish the gas transmission and underground storage tariffs. While a "price-cap" methodology is applied in establishing gas distribution and supply tariffs. [2]

edit top


6.3. Downstream

The largest distribution and supply companies in Romania are:

1. SC Distrigaz Sud SA. 2. E.ON Gas Romania SA. – formerly Distrigaz Nord SA 3. OMV Petrom SA. – formerly SNP Petrom 4. SC Congaz SA.

The downstream market has opened for the full 100% in July 2007. [1], [2]  

edit top




Comments

About EDI
Executive Education
Energy Knowledge
Events
Contact