Moldova inks ‘historic’ Black Sea gas deal to bolster energy security

Moldova’s state-owned energy company Energocom has signed what it says is its first long-term gas purchase contract with Southeastern Europe’s integrated energy player OMV Petrom for a project under development in the Black Sea.

The deal, dubbed “historic” by the Moldovan Energy Ministry, will enable Energocom to purchase natural gas from the strategic Neptun Deep project for three years, once it produces first gas, which is expected in 2027.

The project is described as the largest natural gas project in the Black Sea and the first deepwater offshore project in Romania. With estimated reserves of approximately 100 billion cubic meters of natural gas, it is envisaged to help position Romania as the largest natural gas producer in the European Union.

Under the new deal, deliveries will be made to the virtual trading point (VTP) in Romania and then transported to Moldova. The Romanian Energy Ministry described the deal as the first concrete step in the regional capitalization of its strategic resource.

“After Russia reduced gas supplies to the Republic of Moldova in 2021, Energocom demonstrated that it can bring liquefied natural gas even from overseas, and now it is securing supplies from the largest offshore project in the Black Sea that is set to begin extraction in the near future. Through this long-term contract, we will contribute to diversifying supply sources and, thus, to the country’s energy security,” said Moldova’s Energy Minister Dorin Junghietu.

Romania’s Minister of Energy, Sebastian Burduja, welcomed the signing of the deal, noting that the contracted amount is less than 1% of the total minimum reserves confirmed in Neptun Deep. According to him, this leaves enough room for the use of Romanian gas at home, while supporting Moldova in its effort to eliminate dependence on energy resources “from the East.”

“This step confirms both the viability of the Neptun Deep project, as well as the maturation of the energy market in Romania and our ability to think regionally, strategically, Europeanly. We will continue to stand by our brothers across the Prut, for a safer and more prosperous future for all of us,” remarked Burduja.

The Romanian ministry reaffirmed its commitment to an energy-independent Romania, integrated into a regional solidarity network, adding that it will remain an active partner of the Republic of Moldova in its effort to become part of the European energy market.

Greenlighted in 2023, the €4 billion Neptun Deep is being developed 50:50 by OMV Petrom and Romgaz. In March, the Transocean Barents rig started drilling the first well for the development and production of the Pelican South and Domino natural gas fields in the Neptun Deep block. The rig’s assignment is set to last 540 days.