Germany to Buy Romanian Gas from Black Sea

Austria’s OMV has signed an agreement to supply natural gas from the Neptun Deep project in the Black Sea to Germany’s Uniper. According to Reuters, citing sources close to the deal, the five-year contract calls for 15 terawatt hours (TW*h) of natural gas to be delivered from Neptun Deep, NewsWeek reported. This agreement marks an important milestone for the deepwater natural gas project, more than a decade after the discovery of resources in Romania’s exclusive economic zone in the Black Sea. The agreement was made in the context of Russia suspending gas supplies via Ukraine and the EU states significantly reducing their energy purchases from Moscow. The contracted volume represents about 1.5% of Germany’s gas imports projected for 2024. The Neptun Deep field, scheduled to start production in 2027, has recoverable gas reserves of approximately 100 billion cubic meters, making it one of the most important fields in the European Union. Annual production is estimated at 8 billion cubic meters of gas for about 10 years, almost double Romania’s current production. Gas supplies to Europe will also start in 2027. The operation of Neptun Deep will thus make Romania the largest gas producer in the European Union, as well as a net gas exporter. This strategic development will strengthen the Romanian state’s position in the European energy market and will contribute to the diversification of energy sources in the region. Under Romanian law, the government will have the right of first refusal to purchase gas produced from the project. At the same time, producers have made it clear that the Black Sea region has huge potential for new discoveries, with total reserves estimated at around 200 billion cubic meters.