Romania's Romgaz defers carbon capture projects until they prove feasible

Romgaz will not make investments in carbon capture (CCS) capacities until the projects are technically, economically, and commercially feasible, said Gabriela Trâmbițaș, the state-owned company's financial director, during the conference call with analysts following the publication of the third-quarter financial results, according to Cursdeguvernare.ro.

Romgaz announced in a note to investors in October that it has filed a direct action against the European Commission (EC) with the Court of Justice of the European Union, requesting the annulment of the decision by which it is obliged to ensure a carbon dioxide storage capacity of 4 million tonnes per year by 2030. The company estimates the cost of the necessary storage capacities at several hundred million euros.

In the meantime, Romgaz is assessing its technical potential to see if it is possible to create a storage capacity. However, no investment will be made, regardless of the CJEU decision. Romgaz will analyse and invest in such projects only if they confirm technical, economic, and commercial feasibility, said Gabriela Trâmbițaș.

Regulation (EU) 2024/1735, also known as the NZIA regulation, supplemented by the two normative acts whose cancellation Romgaz requests, requires oil and gas producers in the European Union to ensure a CO2 storage capacity of 50 million tonnes per year by 2030, of which Romania has a quota of 10.25 million tonnes of CO2 per year, and Romgaz, one of the three Romanian companies with such requirements, a quota of 4.12 million tonnes of CO2 per year.

The other Romanian companies are OMV Petrom and Black Sea Oil and Gas (BSOG).

(Photo source: Imquam Photos/Adel Al-Haddad)