The re-liberalization of the gas market, the resumption of the “gas release” program, and the extraction of Black Sea gas could represent Romania’s opportunity to become a significant market—the energy hub that is frequently discussed—stated Septimiu Stoica, Chairman of the General Meeting of Shareholders of the Romanian Commodities Exchange, on Monday.
He argued that market prices must be formed freely and that the market needs to be liberalized.
“Over the years—and I have been attending these conferences for a long time—we have tried to ensure that, at least from our side, they do not turn into monologues about what we have done and what we intend to do; instead, we want to discuss issues—informally, so to speak. (…) We want the Romanian market to carry weight, to be more than just a place where transactions happen. That is not enough. A market does far more than merely facilitate transactions. A market discovers prices—both current and future ones. For that to happen, a market must truly function as a market. Why isn’t there a real market in Romania? Because it lacks—at least in the gas sector—the fundamental characteristic: liberalization. A market must be free. Prices must be formed freely. If prices are not formed freely, then what exists is merely—how should I put it—a so-called market,” he said. In the view of the BRM representative, regarding the energy market—covering not just gas but also electricity—circumstances such as economic and political crises have given rise to what can only be described as the oxymoron of a “regulated market.”
“However, this is not ‘regulated’ in the standard sense—meaning rules that ensure transparency, fair competition, access to information, and the like—but rather a market where prices are administratively imposed. In this situation, we are not merely stagnating in a pseudo-market; we are getting bogged down in it, deluding ourselves year after year—a delusion that even spreads to our neighbors—that we will eventually have a real market. No, that is not how a market is built. When we look at the nitty-gritty details—specifically regarding natural gas—we envision a genuine exchange-based market that truly matters, provided a few measures are taken. First, April 1, 2027, should mark the re-liberalization of the market; we need to move past the protective measures used to defer—term after term, regardless of which political team is in charge—facing the fear of what liberalization might bring. We should ensure protection for the truly vulnerable, while allowing the market to function as it should for everyone else,” says Septimiu Stoica.
Furthermore, the gas release program should be resumed, even if only at the minimum level of 20%. “And, if possible, the gas release program should be resumed—even at a minimum level, say 20%, or perhaps 30–40%. This, combined with bringing Black Sea gas online, could be our chance to become a significant market player—to become that hub. For years, at countless conferences, that hub has been envisioned and discussed. It has become something of a national obsession, yet it is both exhausting and inefficient to merely talk about it. However, if we were to secure these conditions—given our privileged position regarding natural gas, a resource we can truly showcase (after all, how many EU countries are actual gas producers?)—the situation changes. We have both genuine sellers and buyers. For us, it is not like elsewhere, where the market simply means aggregating buy orders to secure better prices; we can actually facilitate competitive trading. And becoming a natural gas hub… I believe there are few areas where we can boast of finally taking the lead—not just in sports competitions or through the talents of our contemporaries, but as a society. It is a chance to finally shape our own history—our economic history—rather than being at the mercy of the tides, the whims of nature, the fluctuating levels of the Danube, and things of that sort,” added Stoica.