(MENAFN- Trend News Agency) BAKU, Azerbaijan, May 31. Romania can act as an
important transit country for transport of gas volumes from
Azerbaijan, Romania's Minister of Energy Virgil-Daniel Popescu said
in an exclusive interview with Trend on the occasion of the Baku
Energy Week.
"Romania and the Republic of Azerbaijan have a long tradition in
terms of energy cooperation relations. The Strategic Energy
Partnership has strengthened and expanded year by year. During last
year, the two countries had an extremely consistent bilateral
dialogue and signed important documents regarding the
implementation of some strategic energy projects. Romania
appreciates the active participation of Azerbaijan in joint efforts
to strengthen Europe's energy security, especially in this
challenging energy context, through its key role in developing the
Southern Gas Corridor and its commitment to increase the
Azerbaijani gas volumes for the European market," he said.
Popescu noted that a time reference point in the
Europe-Azerbaijan relationship was the signing on July, 2022, of
the MoU related to a Strategic Energy Partnership which opened a
new chapter of the energy cooperation between Europe and Azerbaijan
and includes a commitment to double the capacity of the Southern
Gas Corridor so that, by 2027, at least 20 bcm of Azerbaijani gas
can be delivered to the EU annually.
"This will contribute to the diversification goals included in
the REPowerEU plan and help Europe to end its dependence on Russian
gas. In 2021, Azerbaijan delivered 8 bcm to Europe, and this year
the target is 12 bcm. This will represent almost half of the total
export, which Azerbaijan plans for this year, at the level of 24.5
bcm. However, Europe-Azerbaijan cooperation is much more extensive,
aiming at accelerating the implementation of renewable energy
sources and addressing the issue of methane emissions. The EU and
Azerbaijan share the ambitious goal of accelerating the development
and deployment of renewable energy production and transmission
capacity in order to maximize synergies between the EU's transition
to a clean energy and Azerbaijan's vast untapped energy potential
in the field of renewable energy, especially the offshore energy
sector," said the minister.
He went on to add that Europe has largely found its balance and
path forward after the shock of the multiple crises it has gone
through.
"On this way, the Republic of Azerbaijan has been, is, and will
be a reliable partner, which opened a new gas supply path for
Europe especially through its essential role in the implementation
of the Southern Gas Corridor, a project that must be expanded so
that more and more countries in Europe to benefit from this
valuable gas transport infrastructure," said Popescu.
Next steps for Solidarity Ring
The minister noted that through the gas transport infrastructure
it has – BRUA gas pipeline, Iasi- Ungheni-Chisinau gas pipeline,
Trans-Balkan Corridor and the operational gas interconnectors –
Romania already functions as an important regional gas supply
node.
"Romania transport gas for Ukraine, for Hungary and further for
Slovakia, we transport gas for the Republic of Moldova. In addition
to the operational gas interconnectors and the BRUA gas pipeline,
the reactivation of gas transport with the exploitation of its full
potential on the Trans-Balkan Corridor was in Romania's attention.
Thus, at the end of 2021, the operator of the national gas
transport system TRANSGAZ has completed all the necessary works to
ensure the reverse flow at the entrance to the Trans-Balkan
Corridor in Romania, so that it can take over the volumes of gas
required not only for Romania, but also for other states in the
region. Romania supported the Solidarity Ring project and signed in
Sofia the Memorandum on encouraging cooperation between transport
and system operators from Bulgaria, Romania, Hungary and Slovakia
and SOCAR. The objective of this Memorandum is to ensure
unrestricted and uninterrupted access to natural gas produced in
Azerbaijan or available through terminals in Greece or Turkey, thus
allowing the provision without difficulty of additional gas volumes
to the states in the region. The MoU is open for other states in
the region to join, such as the Republic of Turkey, the Republic of
Moldova or Ukraine, because interconnection has proven to be not
only a measure of solidarity, but a valuable tool for ensuring
energy supply and security," he said.
Popescu believes it is important to note that the European
Commission supports member states in their diversification
efforts.
"This message was expressed by Mrs. Kadri Simson on the occasion
of signing this Memorandum, underlining the importance of this
document which will provide a framework for the further development
of alternative routes for gas supply in the region. Diversification
of sources and supply routes is the key to strengthening national
and regional energy security. That is why I want to emphasize the
importance of the Trans-Balkan Corridor in the current regional
energy context. This Gas Corridor, used to its maximum potential
through the operationalization of the Solidarity Ring project, can
represent an important supply route for many countries in the
region. By using the infrastructure of the Trans-Balkan Corridor on
its territory, Romania can act as an important transit country for
the transport of gas volumes from Azerbaijan, but also from the
Turkish or Greek terminals, to many countries in the South-Eastern
Europe and the Balkans," he added.
Green Corridor from Caspian Sea to Black
Sea
The minister noted that the Agreement between the governments of
the Republic of Azerbaijan, Georgia, Romania and Hungary regarding
the Partnership in the field of development and transport of green
energy is a commitment of Romania for a Green Corridor, in the
context of the efforts made by our country to ensure the transition
to clean energy by promoting renewable energy sources.
"The construction of the submarine cable as part as green
corridor is important and viable not only because a green transport
Corridor between the Caspian Sea and the Black Sea is being put
into practice, but also because in the margin of the energy supply
diversification process, it is an opportunity for the entire
European continent. In the framework of a study performed by
Italian consultant CESI which assessed the possibility and
opportunity of building un submarine cable between Romania and
Georgia, a number of technical and financial aspects were evaluated
and presented during a meeting in Tbilisi. The preliminary results
of the study are being analyzed and assessed at the levels of the 4
signatories, including from the point of view of considering these
results in the framework of a more extended study that was proposed
to be performed and that will go beyond the construction of the
submarine cable, assessing the possibility of producing and
absorbing green energy in the 4 signatories countries and in
Europe," he explained.
Expanding SOCAR's business in Romania
"We are happy to see that Romania is among the priority
directions of SOCAR business development, not only in the area of
retail operations, but now also in the transmission of Azerbaijani
gas volumes in Romania and to other European markets, via Romania.
Until now, SOCAR Romania owns a number of 66 own stations and
operates 3 warehouses: Teiuș, Onești and Constanța. SOCAR offers an
extensive range of products and services in the field of fuels,
lubricants, petrochemicals and bitumen trade, becoming one of the
important players on the Romanian fuel distribution and petroleum
product trading market," said Popescu.
More than that, as the minister recalled, ROMGAZ and SOCAR
signed in June, 2022, a MoU through which the companies propose to
strengthen energy cooperation relations and to explore new
collaboration opportunities in order to implement mutually
beneficial projects in the energy field.
"Also, Romania and Azerbaijan proposes to explore, based on an
MoU signed in October last year between SOCAR and ROMGAZ companies,
the opportunities for the joint development of a liquefied natural
gas project in the Black Sea, a project that can support the
strategic safety objectives in the supply of natural gas and
diversification of sources for Romania, but also the potential of
the Republic of Azerbaijan as an important gas supplier for Europe.
Romania propose to the SOCAR company to analyze the opportunities
to expand the fields of activity in Romania, in the light of the
new European paradigm towards obtaining energy from sources with
low carbon emissions, by taking into account potential investments
in electricity production using natural gas. At the same time,
another direction of cooperation of interest for Romania that SOCAR
could analyze is the sale of petrochemical products, manufactured
at the facilities owned by SOCAR in Azerbaijan and Türkiye, on the
Romanian market. In this context, the Romanian Side expressed the
interest especially for chemical fertilizers, necessary for the
Romanian agricultural sector," he said.
Gas contract between Azerbaijan and Romania
Popescu recalled that ROMGAZ and SOCAR entered into contractual
arrangements starting with the beginning of this year.
"Such contractual arrangements formed the basis for a
constructive joined work and proved to be a new milestone for
strengthening the good cooperation relationship between the two
companies. Therefore, we are confident that such cooperation will
be extended beyond 2024, not only by entering into new gas supplies
contracts but also into other potential projects of mutual
interest," he concluded.
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