The Black Sea, although on the border of the European Union, is becoming a central sea in terms of importance, being essential for the energy security of the region, but also for the national security of the states.
The role of the Black Sea and the importance of the project Neptune Deep were the central themes of the New Economy programme, which featured Florin Spătaru, State Counsellor in the Prime Minister's Chancellery, former Minister of Economy, and was moderated by Adrian Măniuțiu and Daniel Apostol, Director General of Oil and Gas Employers Federation.
You can watch the recording of the show here:
Production from the Neptun Deep project could start in 2027, and the new quantities of natural gas could support both Romanian domestic consumption and the chemical industry, a sector that could see a significant revival.
Natural gas has an important role to play in the energy transition and in this new economy that is now developing, which requires clean energy in significant quantities and at competitive prices.
The role of the state in the development of large energy projects
The state has an essential role to play, both through regulatory capacity, through legislation, but also by stimulating projects where the private component has a role, but cannot support 100% these initiatives.
It's about the development of the whole gas transmission network, connectivity, all the bilateral or multi-partner agreements that we need to secure. Through these measures, the state can give what any private operator demands, which is predictability and transparency. Because we are talking about long-term strategies, we cannot judge in electoral cycles.
CCS (carbon capture and storage) and the role of the Black Sea
We have a problem with the NZIA, with the carbon storage quota. The latest discussions have tried to mediate such a problem and to have not an obligation but a storage target. We have a major delay in generating this concept of carbon capture, transport and storage. We adopted legislation in 2011.
What have we done by 2024? Absolutely nothing. I had a project, Getica, a relatively well-done project, but which we did not fund. That would have been a pilot project that could have generated added value. The National Agency for Mineral Resources has published the amendment to the new law in its transparency. We have supported several pilot projects for carbon capture and storage precisely to generate this enthusiasm that Romania will be able to do this capture. The Black Sea, in turn, can store this carbon, which is an important competitive advantage.
Destination of natural gas from the Black Sea
Ideally, a good portion of these gases to be found in the Romanian economy, in industry, and not in household consumption or energy production. This is also a very important component, but ideally it should be in value-added products such as chemicals. The chemical industry is the generator of a whole value chain. The latest NSI study shows that dextrose, a chemical product, is the main source of inflation. It generates an entire value chain, from the exploitation of the raw material, calcium carbonate, and throughout the processing chain.
Neptun Deep project must continue
It would be a big mistake to stop this project. This would affect not only Romania, but the whole European concept. Europe's energy transition cannot work without gas. Anyone who says that we immediately find other solutions in an extremely short time is only creating another dependency for Europe.
The Black Sea is a balancer, both for domestic consumption and especially for the development of industry. This includes the chemical industry, which generates an entire value chain, but also a possible semiconductor industry. This sector is highly energy-intensive - both in production and use - and involves synergies with the chemical industry. The Black Sea is also a security factor, through the agreements that Romania signs with its Black Sea neighbours.
"In addition to the major projects that we have, we're going to have to look at the other advantages that we have, in terms of transport corridors, carbon storage, all the resources that we can have from this area."
Florin Spătaru - State Counsellor, Prime Minister's Chancellery
NEW ECONOMY is a series of dialogues with energy sector specialists from authorities and ministries on the transformations triggered by the energy transition. These are technological as well as economic changes, the imposition of higher and more costly environmental standards, and the possibility or impossibility of maintaining the competitiveness of certain industries. Adrian Măniuțiu and his guests bring all this to the public's attention in a series that aims to inform, educate and demolish myths in order to make the transition easier to understand, accept and overcome for the citizens of Romania.
