Transgaz claims EC investigation on gas export restrictions not affecting the company’s operations

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National gas carrier Transgaz claims, in a release on Friday to the Bucharest Stock Exchange (BVB), that the EC investigation launched on the gas export restrictions does not affect the company’s capability to complete operations

Transgaz says it will conduct with celerity all the necessary actions to provide the documents for investigation to the European Commission.

“Considering the proper corporate governance practices, SNTGN Transgaz SA wishes to inform all those concerned that the company will, in the near future, take all the necessary steps to clarify and to efficiently mobilize resources and to provide data, information, to the European Commission for conducting the investigation. The EC investigation does not affect SNTGN Transgaz’s ability to continue its mission, as the company is responsible for the timely and safe conduct of all operations. SNTGN Transgaz also pays attention and importance to the plans for the development of the national gas transmission network in Romania and to the implementation of the appropriate measures for its integration with the European natural gas market, including, but not limited to, the development of interconnections with the EU Member States,” the communiqué reads.

The European Commission (EC) has opened a formal investigation on Thursday to assess whether Romania’s gas transmission system operator Transgaz has been hindering gas exports from Romania to other EU Member States, as a press release informs.

The Commission will investigate whether Transgaz has abused a dominant market position in breach of EU rules.

“The Commission is determined to ensure that consumers throughout the EU enjoy secure energy supplies at affordable prices. An integrated and competitive single European energy market is essential in this regard. We therefore need to investigate whether Transgaz has been abusing its dominant position by isolating the Romanian gas market and preventing its integration into the European gas network,” Commissioner Margrethe Vestager, in charge of competition policy, said.

Romania is the third largest natural gas producer in the European Union (after the Netherlands and the United Kingdom) and has important gas reserves, including newly discovered natural gas fields in the Black Sea. Transgaz is the sole operator of the natural gas transmission system in Romania.

The Commission’s antitrust investigation will focus on indications that Transgaz has devised a strategy to restrict gas exports from Romania to other Member States. This strategy may have been implemented in several ways including through the use of: interconnector transmission fees, underinvestment or delays in the building of relevant infrastructure, and un-founded technical arguments as a pretext to prevent or justify delays in exports.

Transgaz’s behaviour, if established, may be in breach of the EU’s antitrust rules (Article 102 of the Treaty on the Functioning of the European Union) and constitute a restriction of competition and lead to a limitation in the choice of supply route. This could lead to higher prices and less secure supplies of natural gas by decreasing liquidity on wholesale gas markets in Romania. The behaviour could ultimately harm EU consumers and run counter to the Energy Union objectives of greater integration and increased security of supply in European energy markets.

The opening of the formal investigation follows inspections carried out in June 2016 in Romania.

EC will now carry out its in-depth investigation as a matter of priority. An opening of a formal investigation does not prejudge its outcome, the release pointed out.

 

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