Report: Romania Becomes the Largest Natural Gas Producer in the EU

By Romania Journal Last updated Oct 25, 2024

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Romania became, for the first time, the largest gas producer in the EU, followed by the Netherlands in second place and Germany in third place, the European Commission’s quarterly Gas and electricity market report states. Until now, Romania was the second producer of natural gas in the European Union, after the Netherlands.

“The gas market report confirms that EU gas markets stabilised the positive structural changes that started in 2022, in the aftermath of Russia’s invasion of Ukraine, and further strengthened the market fundamentals overcoming most of the negative effects of the 2022 energy crisis. In the second quarter of 2024, EU gas consumption continued its structural decline driven by declining fossil gas-fired power generation, higher energy savings, reduced demand and growing renewable energy production,” the report points out.

The EC also notes that EU gas imports further decreased, and gas storage filling rates continued rising. Gas retail prices returned to levels last seen in 2021, before the outbreak of the energy crisis. Gas wholesale prices continued to converge in the EU internal gas markets indicating healthy cross-border flows and competitive supply conditions.

EU gas consumption was 61 bcm, a decrease of 6% year-on-year and 45% quarter-on-quarter, indicating a continued contraction of EU gas consumption driven partially by an annual 22% decline in gas input for power generation. EU domestic gas production was 7.7 bcm, a decline of 8% quarter-on-quarter and by 18% year-on-year.

The report underlines that Romania became the largest EU producer for the first time, followed by the Netherlands in second position and Germany in third. EU gas storage reached the highest level since 2021, 67%, 3% higher than in Q2 2023.

EU gas imports amounted to almost 70 bcm, unchanged compared to the previous quarter, but 9% less than in the previous year. Pipeline gas constituted 64% of imports (44 bcm) and LNG accounted for 36% (25 bcm). Norway remained the EU’s biggest gas supplier (34%, 23.3 bcm), followed by Russia (18%, 12.4 bcm), the U.S. (16%, 11 bcm), North Africa (15%, 10.8 bcm), Qatar (4%, 3 bcm) and Azerbaijan (4%, 3 bcm).

EU pipeline imports increased by 7% compared to the previous quarter and by 2% compared to the previous year. Norway supplied half of the EU’s pipeline imports (50%), followed by North-Africa (19%), Russia (17%) and Azerbaijan (7%).

EU total gross LNG imports decreased by 10% quarter-on-quarter and by a significant 23% year-on-year. France remained the largest EU importer with a share of around one fifth of LNG, followed by Spain (17%) and the Netherlands (17%). The U.S. remained the biggest EU LNG supplier accounting for 44% of EU LNG imports, followed by Russia (19%) and Qatar (12%).

Russian gas represented 18% of the EU’s total gas imports, a decrease of 1 percentage point compared to the previous quarter and a 4 percentage point increase year-on- year. Compared to 2021 (the last year before Russia’s invasion of Ukraine), Russian gas imports declined by 70%.

European wholesale gas prices averaged 32 €/MWh in the second quarter of 2024, an increase of 16% compared to the previous quarter and a 9% decrease year-on-year. Asian prices were 13% higher than European prices in the quarter.

Retail gas prices decreased by 4% compared to the previous quarter and by 10% year-on-year. The EU average retail price was 101 €/MWh. May 2024 registered the lowest retail price (100 EUR/MWh) in the quarter, and since the start of the energy crisis in 2022.

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