Black Sea Oil & Gas and Transgaz sign 15 year contract for injecting gas production into the NTS


Transgaz and Black Sea Oil & Gas today signed the gas transmission contract for the transport of the Midia Gas Development Project (MGD Project) production into the National Transmission System (NTS). However, the contract is still subject to final investment decision (FID), as the assessment of the impact of the Offshore Law on BSOG business is still underway, stressed the CEO Mark Beacom.

With respect to the MGD Project, Mark Beacom said that the company continued to move ahead to close out all the remaining milestones, necessary for the shareholder and partners to reach a decision: „These milestones include completing all the regulatory requirements, the signing of a gas sales agreement with a gas buyer, having in place all the long lead and major equipment purchase orders, EPCIC and Drilling Contracts. The assessment of this Offshore Law on the project’s economic viability will be a key part in determining whether a favorable decision to FID will be taken.”

The contract signed on Nov 9th is the outcome of a Cooperation Agreement signed in 2016 and an open season capacity booking process which first commenced in July 2017. The contractual period covers 15 years with a first gas delivery date on 1 February 2021 at a transmission capacity of 1 bcm/year.

The MGD Project consists of 5 production wells (1 subsea well at Doina field and 4 platform wells at Ana field) a subsea gas production system over the Doina well which will be connected through an 18 km pipeline with a new unmanned production platform located over Ana field. A 126 km gas pipeline will link the Ana platform to the shore and to a new GTP. The processed gas will be delivered into the NTS at the gas metering station to be found within the GTP.

“Given the natural gas deposits discovered in the Black Sea in the last period, Transgaz intends to expand the National Transmission System in order to set up an additional entry point for the natural gas coming from the Black Sea offshore blocks”, said Ion Sterian, Transgaz’ General Director. The project consists of building a new 20″ (Dn 500) gas pipeline designed to carry natural gas at a pressure of 55 bar, with a total length of approximately 24.37 km that will connect the Black Sea coast with Transit 1 transport pipeline on the route Black Sea coast – Corbu – Săcele – Cogealac – Grădina. The project will contribute to the sustainable development of the area, and all natural gas coming from this block will enter the National Transmission System.


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