Romania Resists Pressure to Rush Offshore Gas Bill

Romania is resisting pressure to rush through legislation to regulate offshore exploitation of its Black Sea gas deposits - amid a spat with Hungary over the lack of infrastructure and the slow progress in adopting relavant legislation so far.  

A public dispute erupted last Wednesday after Hungarian Foreign Minister Peter Szijjarto told the Washington World Gas Conference that Romania needed to be pressured to adopt legislation and upgrade its infrastructure.

A US State Department statement on June 29 echoed this line.

It read: "Black Sea gas from Romania represents a promising yet untapped source of energy that would strengthen energy markets and energy security throughout the region.

"We are closely watching developments as Romania's parliament and government work out the legislation that will establish the stable fiscal and regulatory framework required for energy companies to invest in the development of this resource."

Hungary signed a strategic partnership with US company ExxonMobil in early June. It is counting on Romania to upgrade its gas transport infrastructure so that it can ship 4.4 billion cubic meters a year from beneath the Black Sea towards Hungary.

The capacities have been acquired by two Hungarian companies until 2037. 

Romania's Foreign Ministry on Saturday issued an annoyed response to Hungary's claims, saying that it sought an explanation from the Hungarian embassy and accusing Hungary of spreading "incorrect information" about Romania.

"On June 4, the Romanian gas transporter announced that it had begun construction work for the BRUA pipeline Phase I on Romania's territory, which requires important funds from the Romanian company to ensure the connection towards Central Europe," the Foreign...