The Russia-Ukraine gas price feud hits Romania

State-owned gas transporter Transgaz announced yesterday that Russia’s Gazprom had completely suspended gas deliveries through the Isaccea 2 station.

Gas deliveries from Russia to Romania through Isaccea 2 (southeastern Tulcea County) amount to 4.7 million cubic meters per day, and make up two thirds of the total imports. Russia currently delivers 2.5 million cubic meters of gas to Romania every day, through the Mediesul Aurit station. Meanwhile, the Ministry of Economy said that providing energy to the population is a priority for the government. The cabinet decided to lower gas consumption at electro-thermal plants, which are to use heating oils and coal to produce energy. Gas-based energy producers indicated that their stocks of heating oils are sufficient for 10 to 40 days, if Russian gas deliveries through the Mediesul Aurit station continue.

Officials of Romania’s largest company, Petrom oil group, who attended a crisis meeting at the Ministry of Economy, said the company can increase its production of heating oils, which they could sell on the local market to energy producers.

During the meeting, some energy producers said that a hike in electricity and thermal energy is required, if more expensive fuels are used, while others indicated that compensations could be found, so that a rise in tariffs can be avoided.

Prime Minister Emil Boc said that the gas deficit resulting from the partial halt of Russian imports will be covered by domestic production, the stocks of natural gas reserves and alternative fuels. An emergency commission is to discuss the worst case scenario, if all Russian gas imports through Ukraine are halted.

“We contacted the Gazprom official in Bucharest, who was unable to provide a response to this situation, and said that the stoppage [in imports] is not due to Gazprom, but to problems on the transportation network,” according to Economy Minister Adriean Videanu.

Boc added that, “although this is not the most favorable situation for Romania, we have things under control. No household will be affected, and we will take steps to protect industrial consumers.”

However, the drop in imported gas deliveries has started to affect major consumers, such as the ArcelorMittal Galati steel plant. Romania imports one third of its annual gas consumption from Russia. Its annual consumption now amounts to 61.5 million cubic meters per day, of which 33 million cubic meters come from current domestic production, 26 million cubic meters from stored gas volume, and the remaining 2.5 million imported through the Mediesul Aurit station.

‘Although this is not the most favorable situation for Romania, we have things under control. No household will be affected, and we will take steps to protect industrial consumers' Emil Boc Prime Minister