Ganes

Good morning from Bucharest!

It has been a busy political week in Romania, where new points of interest came up on the political scene. But no need to worry, things look steady.

Here is what happened:

- PM Viorica Dancila was designated as her party’s candidate for the presidential elections scheduled for October - November this year.

- Calin Popescu Tariceanu, ALDE`s leader was hoping to be the one candidate of the PSD-ALDE ruling coalition, but his hoped were dashed following his party’s poor result in the EU elections of May 26. Obviously incensed by Dancila’s decision to run, Tariceanu officially announced he will also stand to be elected, hoping to attract social democrats who are unhappy with Dancila as a candidate. But he also stated clear a paramount issue: ALDE will NOT withdraw from governing!

- Dancila sacked two key ministers and announced she is eyeing a hefty restructuring of the Cabinet in early September.

- For now, the enduring alliance between PSD and ALDE stands as proof of governing stability.

Foto credit: bucharestcityinfo

Romanian Natural Gas Market Overview

According to Romanian energy regulator (ANRE), gas imports rose by 55 percent in January 2019 compared to January 2018, up to 4.2 million MWh, while the average price rose by 37 percent to RON 124.1 per MWh (approx. 27.5 Eur). In january 2019, Romania’s reliance on gas imports rose by 5% compared to January 2018. This increase is mainly due to higher local consumption and the decrease in local gas production.

Last year, Romania’s ruling majority proposed an amendment that will increase the taxes paid by local gas producers, a move that favors imports, according to experts. According to this proposal, the additional tax paid by domestic producers for the natural gas extracted in Romania will be calculated according to the trading prices of the hub from CEGH Vienna.

OMV Petrom, Romania’s most prominent oil & gas group, said that the measure would have a strong negative impact on the local energy sector, in terms of energy supply, employment and investments. The group also said that it will not yet be deciding on a possible investment in gas production in the Black Sea’s Neptun Deep perimeter, due to the current “legislative environment,” referring to the Emergency Ordinance 114/2018.

Meanwhile, Ukraine's failure to reach a deal with Gazprom might put Romania in the situation of seeking to import gas from other sources than the North-South pipeline that crosses Romania’s territory.