MP Drafts Law Banning Romania’s Would-Be Natural Gas Exports

04.19.2011 By Andrei Circhelan

Romanian leftist MP Iulian Iancu told an energy conference Tuesday that he has submitted a draft law banning natural gas exports, even though Romania is physically unable to unfold such exports at the moment.

Romanian leftist MP Iulian Iancu told an energy conference Tuesday that he has submitted a draft law banning natural gas exports, even though Romania is physically unable to unfold such exports at the moment.

"Export would be a coup de grace for the Romanian economy. Thorugh this law, Romania will no longer be able to export natural gas, until resources are diversified," Iancu said.

At the moment, Romania cannot export natural gas to other states, because it does not have the pipeline connections to do so.

Romania draws almost all of its natural gas imports from Russia, through intermediaries. The pipeline from Hungary imports minute amounts compared to consumption.

Gas source diversification would be possible for Romania through the completion of the Nabucco and AGRI pipelines, but neither of these projects will be functional for another several years.

The largest local gas producers are OMV Petrom (SNP.RO) and Romgaz Medias. OMV Petrom recently announced it will sell its gas abroad if regulation is maintained on the local market.