COMPANIES ECONOMY ENERGY

Natural gas market oversaturated. ANRE asks Gov’t to liberalise fully natural gas market for household consumers on July 1

The Energy Regulatory Authority (ANRE) has asked the Energy Ministry to abrogate, on July 1, the Government Decision that introduced the natural gas market liberalisation timetable for household consumers, ANRE President Niculae Havrilet stated on Thursday at a conference.

“Several days ago I presented this situation in a meeting at the Energy Ministry. I considered it is important for the initiator of the Government Decision that introduced this timetable to know that at this hour the developments registered on the natural gas market favour liberalisation. It’s the most appropriate moment to finalise the liberalisation. Basically I have asked for the abrogation of the Government Decision that establishes a 10 percent price hike on July 1, and for us to remain at the current price of RON 60 per MWh, as reference price, with the market set to establish the real price but without starting off from RON 66 or even RON 72 as stipulated in the liberalisation timetable,” the ANRE official stated.

He added that according to the liberalisation timetable a 10 percent price hike, from RON 60 to RON 66 per MWh, is expected on July 1 in the case of regulated prices. However, this would mean that the regulated price would become higher than the RON 63 per MWh price registered on the free market.

 

Romgaz: We can no longer sell the entire production of natural gas due to import competition

 

Domestic natural gas producer Romgaz is currently no longer able to sell its whole production because natural gas has been imported at competitive prices, Romgaz Business Development Director Vlad Pavlovschi stated on Thursday.

“We have ended up producing more than we are selling, because of natural gas imported at a price that does not necessarily reflect the foreign producer’s effort. This is a problem for domestic producers, since there is a 7-8 percent share of consumption that is not covered by domestic production, being covered by imports,” the Romgaz official stated.

Asked whether there is the possibility of shutting down some wells because of this, Pavlovschi answered: “We are not ruling this out. Anything is possible.”

He also emphasised that the existence of a 60 percent surcharge on extra revenue stemming from price liberalisation is creating an even higher disadvantage in the face of natural gas imports.

The situation is also made worse by the drop in consumption. “Since the country’s natural gas consumption is not at the level forecast, natural gas has ended up basically being stored even in the transmission system, which means the pressure is very high in the transmission system,” the Romgaz official added.

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