Gazprom signs deal in Romania (May 13, 2006)

May 13, 2006 (Romania Report & sources)

Assisted by the Romanian Economy Minister—Codrut Seres—, Gazprom head Alexander Medvedev signed a natural gas delivery contract to Romanian company Conef (part of Swiss-based ‘Marco Group’) and discussed issues related to the trans-national ‘Nabucco’ pipeline, in Bucharest on Friday.

The contract involves the delivery of 50 billion cubic meters of natural gas to Conef for the next 25 years.

Minister Seres said this deal is likely to result in smaller prices at end consumers. In addition, the minister said that there exists a possibility for setting up a Gazprom-Romgaz joint venture in order to build a gas storage facility in Roman (North-Eastern Romania).

Medvedev also held talks on the ‘Nabucco’ pipeline with Romanian economy minister Codrut Seres as the Russian part is directly interested in the project.

Construction works at the ‘Nabucco’ project, aimed at delivering some 25 billion cubic meters of natural gas to Europe yearly, are due to begin in 2008 and end three years later. The project would cost some 4.6 billion euro and will include gas deliveries of 11 billion cubic meters to each of the transit countries.

According to Medvedev’s statements in Bucharest, Nabucco pipeline is not viable unless Gazprom participates in the project, as the company is the main source of natural gas on the regional market.

The five companies involve in the Nabucco Gas Pipeline International consortium, which will coordinate the works, are OMV - Austria, MOL - Romania, Transgaz Romania, Bulgargaz Bulgaria and Botas Turkey, all from the countries the pipeline will cross.

The pipeline will extend 457 kilometres on Romanian territory and Transgas will have to invest some 800 million euro to fund this section of the pipeline.


Romania Report & sources