Research and Markets Publishes Romanian Energy Report

Research and Markets published Romania Energy Report – a November 2011 Update .

The IntelliNews Romania Energy Sector Report offers an extensive summary of the Romanian energy sector, segmented into electricity, thermal, water, gas, oil and renewable energy markets. It includes a complete coverage of the latest developments, trends and corporate news, accompanied by thorough statistics and comments.

This sector report is ideal to keep you abreast on recent company and industry news. Written by local professionals, it is a unique market and business intelligence analysis, tailored to save time by providing in-depth information, while helping you to make confident and informed business decisions.

 Summary

IMF urges Romania to draft calendar for privatisation, price liberalisation in energy industry; minority stakes in gas and electricity and gas transportation companies should be up for sale in the coming months; noteworthy, 15% in the gas production company Romgaz, which produces some 5bn cubic metres of gas per year might be for sale under an IPO; the government will also attempt to sell its 10% stake in OMV Petrom oil company, which produces the other half of the country’s gas output, plus 4mn tonnes of crude oil;

Nuclear, hydro state power companies to issue 10% new shares; the companies taken together produce half of the country’s electricity;

Government merges mines with coal-fired power generators, setting up Oltenia and Hunedoara electricity production companies that are going to be privatised by mid-2012, under the stand-by agreement with the IMF;

The investments in the renewable energy area, particularly on the wind power generation side, continue at fast pace; but the threats to sustainable development surface more often and require appropriate attention. Higher end-user prices, problematic connection to the power grid and insufficient balancing services are the main limitations of the massive investments in wind farms, further encouraged by the final enactment of the tradable green certificates scheme [TGC] by the government;

Chinese companies express firm commitment for investing in the EUR 4bn, 1,440MW nuclear plant expansion at Cernavoda and for the EUR 1bn, 1MWh reversed hydro power plant at Tarnita-Lapusesti; further developments depend on the governments ability to manage such large-scale projects;

The interest for the Romanian downstream oil market increased and there are already two new entrants in the car fuel distribution business: SOCAR and Gazproms Serbian subsidiary NIS; SOCAR aims at a 300-station car fuel distribution network, which would make it one of the major players besides OMV Petrom, Lukoil and Rompetrol; NIS wants to develop a chain of 70-80 car fuel filling stations in Romania, and also considers starting power generation;

There is visible interest for the exploration of the Romanian onshore and particularly off-shore oil perimeters recently; The re-negotiations of the exploitation agreements concerning the mature oil [and gas] perimeters is a key issue and even a hot topic given its political implications. Re-negotiations could in principle increase governments revenues, or change the current royalties agreements to production sharing.

[mappress]

Offshore WIND staff, December 22, 2011