Hungary wants to expand its cooperation with Romania in the gas sector to diversify its energy sources, and relevant companies from the two countries are already negotiating an agreement, Hungarian Foreign Minister, Peter Szijjarto, said on Monday, as quoted by Reuters.
Peter Szijjarto stressed that Hungary is interested in cooperation with Romania in the energy field, given that Romania is set to become a net exporter of natural gas in the coming period, with the start of production in a new Black Sea gas field, Neptun Deep, according to Romania Journal.
Drilling at the Neptun Deep gas field in the Black Sea, one of the most important gas fields in the European Union, which will double Romania’s production and could transform the country into a net exporter, could begin in a few weeks.
“This new field will be the only fresh source of gas in the region that can contribute to energy diversification,” Szijjarto said after signing an energy solidarity agreement with Romanian Energy Minister, Sebastian Burduja.
“Our companies are already involved in the necessary trade negotiations and we hope that they will reach an agreement that represents progress for both countries”, the Hungarian official added.
The Romanian Ministry of Energy has not yet communicated anything about this subject.
Hungary has expressed its intention to purchase gas from the Neptun Deep block for years. The Neptun Deep block is owned equally by OMV Petrom and Romgaz.
The Neptun Deep gas field, located in the Black Sea off the coast of Romania, is one of the most significant natural gas reserves in Europe. This deep-water project spans approximately 7,500 square kilometres and is jointly operated by OMV Petrom and Romgaz. It is estimated to hold recoverable reserves of around 100 billion cubic metres of natural gas, making it a critical asset for Romania’s energy sector and the European Union’s energy security.
Development and Investment
The Neptun Deep project represents Romania’s largest energy investment since the construction of the Cernavodă nuclear reactors in the 1990s. With an estimated investment of €4 billion, the project aims to commence production by 2027. The development involves drilling ten exploitation wells and constructing infrastructure to transport the gas via Romania’s National Transmission System.
Strategic Importance
The exploitation of Neptun Deep is expected to double Romania’s natural gas production, potentially transforming the country into a net exporter of gas. This development is particularly significant as the European Union seeks to reduce its reliance on Russian gas imports and enhance energy independence. The project also aligns with Europe’s transition to renewable energy by serving as a bridge fuel during the transition period.
Challenges
Despite its potential, the Neptun Deep project has faced several challenges, including regulatory uncertainties, environmental concerns, and opposition from political groups. The Romanian government has worked to address these issues by amending offshore legislation to create a more favourable investment climate.
Future Prospects
Once operational, Neptun Deep is expected to produce approximately eight billion cubic metres of gas annually for at least a decade. This output will not only bolster Romania’s energy security but also contribute to the stability of the regional energy market.
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