Romania and Azerbaijan signed the first individual contract for the delivery of Azeri natural gas

By RBJ
S.N.G.N. Romgaz S.A. and Socar Trading, the subsidiary of the national oil company of the Republic of Azerbaijan, signed on December 16, 2022, the first individual contract for the delivery of Azerbaijani natural gas to Romania. The individual contract allows planned deliveries of natural gas from January 1, 2023, through the Southern Corridor, using the transport capacities of the TAP, IGB pipelines, as well as the transport systems of Bulgaria and Romania. The contract is based on a framework agreement recently concluded by the two companies, for an unlimited period.
By signing this contract, the possibility of accessing some quantities of Azerbaijani natural gas is ensured to cover potential consumption needs with imported natural gas. The contract thus serves the strategic objectives of security in natural gas supply and diversification of sources.
The framework agreement regarding the delivery of Azerbaijani natural gas as well as this first individual contract is the result of an excellent collaboration between S.N.G.N. Romgaz S.A. and the Socar company, a collaboration initiated at the beginning of this year and formalized by signing a Memorandum of Understanding in June. The parties propose the continuation of cooperative relations and the improvement of the delivery mechanisms of Azerbaijani natural gas on the Romanian market.
Romgaz is the largest producer and main supplier of natural gas in Romania.
The company has been admitted to trading since 2013 on the market of the Bucharest Stock Exchange and the London Stock Exchange (LSE). The main shareholder is the Romanian state with a 70% stake. The company has extensive experience in the field of natural gas exploration and production, its history starting more than 100 years ago in 1909, when the first natural gas deposit was discovered in the Transylvanian Basin at Sărmășel.
Romgaz carries out geological exploration in order to discover new gas deposits, produces methane gas by exploiting the deposits in the company’s portfolio, stores natural gas underground, performs interventions, capital repairs and special operations on wells and provides professional technological transport services.
In 2013, ROMGAZ expanded its field of activity by assimilating the thermal power plant from Iernut, thus becoming a producer and supplier of electricity.