Romania signs up to Azeri LNG plan

13.04.2010 16:48

Romania signed a deal with Georgia and Azerbaijan today that could see Azeri gas reach the European Union via two new liquefied natural gas plants - a project that could be finalised faster than the planned Nabucco pipeline, Economy Minister Adriean Videanu said.

Romania is one of six partner states that plan to build the European Union-backed Nabucco pipeline to reduce energy dependence on Russia by transporting gas from the Caspian and Middle East, and is also considering joining Russian-backed rival South Stream.

The new project - AGRI - aims to build two new LNG terminals, one in Georgia and the other in the Romanian Black Sea port of Constanta.

Romanian deputy Economy Minister Tudor Serban estimated the project could cost between €2 billion ($2.7 billion) to €4 billion, adding it could supply Europe with up to 7 billion cubic metres of gas.

"From my point of view this is the fastest and one of the most efficient projects ... to bring Caspian gas to the EU," Reuters quoted Videanu as saying. "Romania's national transport grid can ensure transit to the EU's single market."

He added the project could be finalised sooner than Nabucco, but said AGRI was "complementary" to the EU-backed pipeline.

In a first stage, Romania, Georgia and Azerbaijan will set up a Bucharest-based joint company to carry out feasibility studies.

Earlier this year, Serban said the joint company, which would comprise the three states' national gas producers, would need a private partner to back the project financially. He also said such a project could be finalised in up to three years.

Romania is less reliant on Russian gas than other ex-communist European states and produces around 70% of its annual domestic consumption from local fields and imports the rest from Russia

Source : Upstreamonline