Romania: SOCAR-Transgaz gas transit deal

, SEE Energy News

Romanian natural gas transmission system operator Transgaz and the State Oil Company of Azerbaijan (SOCAR) have signed in Baku a Memorandum of Understanding (MoU) regarding the cooperation in natural gas transit.

Both sides stressed that the signing of this Memorandum will strengthen the cooperation between the two companies on gas transportation, as well as opportunities of using Romanian gas transit and distribution capacity in gas supply from Azerbaijan and the Caspian region, cooperation in natural gas supply and trading in Romanian market (both long -term contract and spot deals), including potential LNG terminal intake within the framework of AGRI project.

The companies also expressed their readiness to intensify the joint activities on natural gas markets of Southeastern Europe and Baltic region.

AGRI project was initiated in 2010 by a memorandum which was signed by Romania, Azerbaijan and Georgia, while Hungary was added later. The project envisages transportation of natural gas from the Caspian Sea region through Azerbaijan and Georgia, and further across the Black sea using tanker ships. It also envisages the construction of two liquefied natural gas (LNG) terminals on the Georgian Black Sea coast and re-gasification terminal at the Romanian Black Sea coast. Transported gas will be mainly used for consumption in Romania and Hungary, while the remaining quantities could be sold at the European market. This project is listed as the Common Interest Project by the European Union, transmits