Romania: Country’s essential energy project – BRHA gas pipeline, SEE Energy News
BRHA (Bulgaria-Romania-Hungary-Austria) gas pipeline project is essential for development of gas transmission system. The Oil and Gas Employers’ Federation (FPPG) reiterated the major importance of strategic projects in the energy field, especially the BRHA project, in their press release.
Despite the severe impact on energy sector, as a result of the current health crisis, members of the federation recognize the upward trend in the European Union’s dependence on natural gas imports. Against the background of a steady increase in demand cumulated with the downfall for the domestic production, ensuring security of natural gas supply represents a necessity.
The BRHA gas pipeline is therefore an essential stage in the development of the national natural gas transmission system. This project aims to increase security in Romania’s natural gas supply through access to new sources, as well as the transit to Central European markets of natural gas production in the Caspian Basin. In addition, BRHA is also a way to access the European markets of a part of the potential Romanian production in the Black Sea.
According to studies and analyses conducted by FPPG with the support of experts in the field, the interconnection of Romania to regional transmission networks is an essential step towards the development of the Romanian natural gas market. The advantages are multiple and concern energy security, as well as commercial, economic, political benefits:
– the connection to the regional natural gas transport corridors allows the supply from new sources. For this reason, Romanian consumers, domestic and industrial, will benefit from the effects of competition between multiple sources of natural gas;
– the development of a transparent and liquid domestic trading market, supported by the two-way link to the European Central Gas Hub at Baumgarten, which will be established through the BRHA gas pipeline, will provide consumers with predictability and security of supply:
– the pipeline can assure Romania an important position in regional markets and will implicitly increase energy security;
– the activity of underground storage of natural gas, with significant geological potential for expansion, can be developed and modernized on a commercial basis, in a regional market context.
– the access of Romanian gas producers to regional and European markets will stimulate investments both in the upstream segment and infrastructure. This may be an instrumental condition in the future development of the offshore sector in the country.