Additional Azerbaijani Gas Can Stabilize Regional Energy Market Romanian Minister (Exclusive)

(MENAFN- Trend News Agency) BAKU, Azerbaijan, September 9. Attracting additional quantities of natural gas supplies from Azerbaijan can contribute to stabilizing the regional energy market, Sebastian-Ioan Burduja, Romania's energy minister, said in an exclusive interview with Trend .

“Indeed, last year, the gas system transport operators from Romania, Bulgaria, Hungary, Slovakia and Azerbaijan, alongside their respective ministers of energy, signed an important memorandum of understanding concerning the implementation of the Solidarity Ring (STRING).

We trust that the implementation of this initiative will bring many benefits to our region. Attracting additional quantities of natural gas supplies from Azerbaijan can thus contribute to stabilizing the regional energy market, without the absolute need for a massive transfer of funds into infrastructure projects that would subsequently impact the price paid by the end consumer,” said the minister.

He noted that the gas contract with Azerbaijan has been crucial.

“Gas is delivered on a market, based on offer and demand. For Romania and the region, the contract with Azerbaijan for gas deliveries has been crucial in order to ensure energy security and supply diversification.

Given the evolution of gas production and gas demand on the market, Romania had been able to cover its needs and maintains itself in the position of EU's second largest gas producer. Nevertheless, continuing the cooperation with Azerbaijan is crucial in order to maintain a stable market, under any circumstances, especially given the evolving war situation in Ukraine. Ultimately, gas acquisitions are based on commercial reasoning depending on market evolutions,” said the minister.

Burduja pointed out that the close cooperation between Azerbaijan and Europe is increasingly profound, touching a wide spectrum of topics, especially in the sphere of energy.

“Given the current context, Azerbaijan's role in regional markets is set to increase. Connectivity is the key word,” added the Romanian minister.

He highlighted that Romania is working closely with Azerbaijan, Georgia and Hungary to develop the Green Energy Corridor.

“It mainly consists of a submarine cable under the Black Sea that will enable green energy to travel seamlessly between our countries, thus further integrating our energy markets. The feasibility study is on the way. From a different angle, there is also a great opportunity in increasing Azerbaijan's role in the EU gas market, by improving the connectivity capacity between our regions. For Europe, greater access to Azerbaijan gas ensures that the internal demand is met, prices can lower and industries such as petrochemicals develop. But even more importantly, gas from Azerbaijan means enhancing energy security, due to the diversification of sources,” said Burduja.

He noted that Romania is determined to improve even further the cooperation with Azerbaijan and to promote the cooperation between Azerbaijan and Europe in the energy sphere.

“The already operational projects, as well as those in various stages of implementation, have already changed and will continue to transform the energy infrastructure landscape in the Southeast and Central European region. These projects create the technical and economic opportunity to transport new volumes of energy from the Caspian region, thereby better integrating this region into the European markets,” said the minister.

Burduja pointed out that Romania is confident that energy security and the development of energy transport infrastructure in Central and especially Southeast Europe, significantly impacted by the prolonged war in Ukraine, along with all its energy-related consequences, will continue to be supported by the European Commission in every aspect and regarded as a European priority.

Broader cooperation with SOCAR

Romania is looking forward to expanding its cooperation with Azerbaijan's state oil company SOCAR on more projects, noted Sebastian-Ioan Burduja.

“The Memorandum of Understanding signed in Sofia sets out directions of cooperation between SOCAR and four distribution system operators for the supply of additional gas from Azerbaijan to Europe. We are looking forward to expanding our cooperation with SOCAR on more projects. The company has proven to be a reliable partner and investor in Romania, as it is expanding its operations across sectors in the Romanian energy market,” he said.

Burduja went on to add that one of these projects is an LNG terminal in the Black Sea will open a new gas transport corridor from the Caspian region, particularly from Azerbaijan, serving as a new entry point for imported gas volumes into the EU market.

“This corridor can be considered the shortest, most direct, and independent gas transport route, connecting Caspian gas sources with EU countries. The feasibility study has been completed, yielding favorable conclusions for implementation. For Romania, the project will ensure the diversification of gas import entry points, while also benefiting the EU by diversifying sources and supply routes. Liquefied natural gas will ensure secure, reliable, and accessible energy deliveries, and I am confident that this project can have a significant positive impact on the energy security of Central and Southeastern European states. Therefore, we hope it will also receive the support of the European Commission for its prompt implementation,” the minister added.

He noted that the Romanian government is a pro-business one.

“All serious investors are welcomed. Romania is the fastest growing economy in the EU over the last 2 decades, as well as currently the second largest FDI recipient in CEE region, after Poland. We have one of the most business-friendly regulation and tax systems and energy is particularly an attractive field,” said the minister.

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