Romanian Govt. expects offshore to cover significant part of energy needs

Offshore natural gas production will reach 10% of total domestic consumption starting next year, and investors are interested in developing offshore wind farms as well, Niculae Havrilet, a state secretary in Romania's Government, said in the online conference FOREN 2020.

Havrilet has not named the oil company that would begin production of natural gas in Romania's Black Sea offshore area. Still, Black Sea Oil & Gas, controlled by US fund Carlyle, has already announced that it would start production in the Midia offshore perimeter in the first half of 2021 while the other investors still have their plans on hold.

Havrilet pointed out that the authorities would stimulate the consumption of natural gas by subsidizing the expansion of the natural gas distribution network (EUR 1 billion from EU funds were earmarked for this) and encouraging private investors to use more gas, for instance, for producing hydrogen - a clean way of storing energy for further use, Agerpres reported.

Speaking about the offshore wind farm projects, Havrilet mentioned a study compiled by the World Bank that indicates a potential of 80,000 MW in Romania's offshore region. However, previous studies on this topic pointed to the high investment needed for such projects, given most of the potential is located in the deepwater area.

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