Romania To Revise Gas Transit Deal With Russia

05.15.2011 By Bostan Radu

Romania's Government will begin negotiations with Russia to revise the existing agreements on the transit of natural gas through pipelines on Romania's territory, says the memorandum of understanding agreed upon with the European Commission.

The document, obtained by MEDIAFAX, says negotiations should begin as soon as possible, but does not provide a deadline for their completion.

The national gas transport system is run by state company Transgaz Medias (TGN), of which the Economy Ministry owns 73.5%. Transgaz also manages the pipelines carrying Russian gas to the Balkans.

Last year, Gazprom and Economy Ministry officials discussed renegotiating and extending Gazprom's deals for the transport of natural gas to the Balkans via Romania, as well as further cooperation in energy production.

In February 2010, the ministry announced that Gazprom is interested in delivering gas to Romania directly via state-run Romgaz Medias, without third party distributors, once the existing contracts expire. Currently, Gazprom delivers natural gas to Romgaz via two distributors, the companies WIEE and Imex Oil. The contracts with both companies expire in 2012.

Romgaz and Gazprom signed in June 2009 a memorandum to set up a joint company to develop natural gas storage facilities in Romania. The joint venture would also invest in power production.

Romania and the IMF signed a EUR5 billion loan agreement, successor to a larger EUR20 billion bailout package that ended in April this year. Under the new deal, the IMF will disburse Romania EUR3.5 billion, while the EU and the World Bank contribute with EUR1.4 billion and EUR400 million, respectively.