Deloitte's Nicolescu: 'Romania to no longer import gas from Russia after Black Sea production starts

Romania will no longer need gas imports from the Russian Federation after natural gas extraction begins in the Black Sea, and the country could jump to the first place among European countries with the lowest dependence on energy imports, Deloitte Senior Expert Razvan Nicolescu told a news conference on Monday. 

Deloitte launched a study called "The contribution of Black Sea hydrocarbon exploration and production projects to the development of the Romanian economy," commissioned by the Association of Romania's Black Sea Offshore Lessors (ARCOMN). 

"Latest data reported by Eurostat show Romania currently ranked third among the countries with the lowest import dependency, and with the Black Sea gas production, chances are we can improve on this performance. (...) I think Romania is in a privileged situation as it owns the source," Nicolescu said. 

He explained that out of offshore blocks, Romania could draw a total of 170 billion cubic metres, or 5 billion cubic metres annually, 65 percent of which could be used in the country. 

"This production, first, will cover domestic use, and then the surplus will be bound for exportation. That would mean that Romania will no longer need Russian gas," Nicolescu continued. 

He added that Black Sea production will compensate for the estimated decline in onshore extraction in the next years. 

"We will have a million new consumers in the next 10 years, given that there are over three million households in Romania that continue to burn biomass, and we estimate that the chemical and petrochemical industries will recover. Moreover, there are new projects for gas-fired plants and the retooling of others to use these resources, so gas use nationwide could return to the 2014 level," said Nicolescu