SOCAR, Romgaz to build LNG plant on Romania's Black Sea coast
BAKU. Oct 20 (Interfax) - The State Oil Company of Azerbaijan Republic (SOCAR) and Romgaz have agreed to jointly develop a project to build a liquefied natural gas (LNG) plant on Romania's Black Sea coast.
SOCAR vice president for marketing and investment Elshad Nasirov and Romgaz deputy CEO Aristotel Marius Jude signed a memorandum of understanding and cooperation on October 19 as part of a visit to Bucharest by a delegation from Azerbaijan led by Economy Minister Mikayil Jabbarov, Azerbaijan's Economy Ministry reported.
The ministry recalled that during an official visit to Bulgaria in early October President Ilham Aliyev held a meeting with Romanian Prime Minister Nicolae Ciuca in which they discussed energy cooperation between countries in the region and identified areas for expanding partnership.
"The signing of the memorandum between SOCAR and Romgaz was the continuation of work in this direction. Azerbaijan's important role in ensuring the energy security of Europe and the development of relations with Romania in a number of areas of the economy was stressed at the signing, and SOCAR's activities in this country were noted. There was also an exchange of views on possibilities for strengthening cooperation in the area of energy, including renewable energy sources," the ministry said.
Romanian media, citing Romgaz, reported that the latter announced plans on Wednesday to develop an LNG project on the Black Sea with SOCAR. The companies signed a memorandum of understanding in Bucharest and agreed to do a feasibility study for such a project, which would include an LNG plant, a regasification plant and other facilities needed to transport gas from the Caspian Sea, the media outlets said.
They reported Ciuca as saying that the memorandum calls for joint investment with SOCAR in a project to produce LNG. The feasibility study will be financed by both parties.
The study is expected to be completed in a very short period, Ciuca said, adding that an international company has been engaged to do it, so there is a guarantee that it will be done. Romania needs this gas and these facilities fast, and hopes to have two terminals, on the east and west coasts of the Black Sea, so that it can diversify and supplement corridors for gas supplies from the Caspian Basin to Europe, he said.
Romanian Energy Minister Virgil-Daniel Popescu said at the signing ceremony that the memorandum will lay the foundation for a new energy transport corridor between the Caspian and Black seas. Romania will become an important energy hub for both electricity and for natural gas, and with colleagues from Azerbaijan it wants to develop investment in the country and promote the energy security of the region and all of Europe, Popescu said.
SOCAR entered Romania's retail oil product market in 2011 and now has about 70 filling stations in the country.
