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Impact of NZIA on the Romanian oil and gas industry: Market interventions and CO2 injection obligations

Bogdan Tudorache

The Oil and Gas Employers’ Federation (FPPG) notes the adoption, this week, of the Net Zero Industry Act (NZIA) by the EU Council. On this occasion, FPPG informs the public and all interested parties about the impact of the adoption of this new Regulation that will produce significant interventions on the market and specific, major obligations for oil and gas producers, directly influencing Romania’s industry.

We remind you that the FPPG position regarding NZIA is based on four critical aspects that must be taken into account when implementing carbon dioxide capture, transport and storage (CCS) projects. The aspects constantly presented to interested parties are:

  1. Economic viability and technical feasibility of CCS projects
  2. Facilitation and stimulation of investments
  3. Creation of an optimal legislative framework
  4. Informing the authorities and the general public about the technology to create understanding

NZIA introduces market interventions and imposes CO2 injection capacity obligations on oil and gas producers based on their production volumes from 2020-2023. Smaller producers below a certain threshold will be exempted from these obligations, details to be defined in a separate delegated act.

Allocation of Shares

The total calculated share is 50 Mtpa. The adopted text presents the risk of a non-uniform interpretation in the way quotas are allocated between EU Member States. This produces significant disadvantages for Member States that are large gas producers. Thus, Romania – the second largest gas producer after the Netherlands – received a quota of 9 Mtpa.

Responsibilities of Member States

Within 6 months of entry into force, Member States must:

– Make available to the public data on all areas where CO2 sites could be authorized;

– Obliges entities to make publicly available, on a non-reliable basis, geological data relating to decommissioned sites and, if available, an economic assessment of the costs of permitting CO2 injection;

– Report on the mapping of CO2 capture, infrastructure and storage projects.

Responsibilities of Romanian producers

– Within 12 months, the obliged entities present to the Commission a plan detailing how they intend to fulfill their contribution to the Union’s objective on CO2 injection capacity by 2030;

– Within 2 years, the entities must report the progress made to the competent national authority and the CE.

The FPPG recognizes that the adoption of the NZIA is an important step towards achieving carbon reduction targets. However, we request increased attention to the specific needs of Romania, being a large gas producer, to ensure a fair distribution of quotas and adequate support for the energy transition.



Autor: Bogdan Tudorache

Active in the economic and business press for the past 26 years, Bogdan graduated Law and then attended intensive courses in Economics and Business English. He went up to the position of editor-in-chief since 2006 and has provided management and editorial policy for numerous economic publications dedicated especially to the community of foreign investors in Romania. From 2003 to 2013 he was active mainly in the financial-banking sector. He started freelancing for Energynomics in 2013, notable for his advanced knowledge of markets, business communities and a mature editorial style, both in Romanian and English.

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