The Romanian Petroleum Exploration and Production Companies Association (ROPEPCA) has reacted to the announcement made by the Finance Minister and argues the capping of natural gas price from domestic production to RON 68/MWh until 2022, will affect first of all the small producers. A release from the association reads that the small producers depend on the external funding and on loans to support the projects with high production costs. So they are the most vulnerable, but also represent the basis for the future competitiveness and diversification of the Romanian gas market.
ROPEPCA argues that capping the gas price is a clear anti-competition decision, if adopted will result in discrimination against the gas imports.
“The capping is against the principles of market functioning and also questions the economic viability of certain reservoirs, which could lead to their closing with impact on production and on the diversity of the Romanian gas sector,” the ROPEPCA release reads.
The association also claims that the planned investments will be affected over long term, the exploration programmes for new deposits, as well as the development programmes for the mature ones.
Over medium and long term, the consequence will be higher dependence on external sources, with negative impact on the consumers’ security and supply.
“The domestic gas producers disapprove the object of the decision and the way it is adopted, without previous consultations of the stakeholders and without a sound analysis of the immediate effects and over medium term on the industry,” the release reads.