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Latvian PM says coalition companies, but the state will retain a total of solid infrastructure to increase gas production
for Europe or compensate for reduced Russian
64%, after applying all taxes.
united on no more Russian situation of the Offshore Law that regulates gas supplies there.
“We agreed in the coalition to settle the

gas the exploitation of natural gas in the Black
Sea. We all agree on the distribution of
There is a consensus among the ruling revenues from this operation that should go in Romania’s largest refinery
coalition that Latvia should give up supplies of a large proportion to the Romanian state and Petromidia resumes
Russian natural gas as soon as possible, LSM’s in a smaller proportion to private companies,”
Latvian-language service reported on April 4. said Ciolacu. operations after $30mn
Speaking after the regular coalition Specifically, he mentioned a 64% share for
meeting on April 4 ahead of a cabinet meeting the state and 36% for companies, respectively. overhaul
on April 5, Prime Minister Krisjanis Karins “After four years of postponements and
said that Latvia will give up the supply of hesitations, I am glad that we have reached Romania’s Rompetrol Rafinare, a member
Russian natural gas regardless of what other a conclusion that will eventually prove of the Kazakh group KMG International,
countries and the European Union (EU) beneficial to Romanians. We know that there announced in a note that it successfully
decide on the matter. are interested companies that could quickly completed the turnaround of the Petromidia
Following Russian atrocities in Ukraine, start exploitation. The mineral resources Navodari and Vega Ploiesti refineries and
pressure is building for a full European Union agency ANRM claims that the Romanian part initiated procedures for restarting production.
embargo on Russian gas supplies, though of the Black Sea holds gas deposits estimated With a value of around $30mn for the
some countries remain reluctant to impact at 200 billion cubic metres,” he added. works carried out, the technological shutdown
their economies for the sake of a principled The bill will be signed by Ciolacu, Prime is the most important project in the company’s
stand. Minister Nicolae Ciuca, and UDMR leader investment plans for 2022.
The Ministry of Economics (MoE) Kelemen Hunor, Economedia.ro reported.. The shutdown included the rehabilitation
responsible for the energy sector has been of the Petroleum Diesel Hydrotreater (HPM)
instructed to draw up a report with solutions unit, affected by a technical incident last year.
on how Latvia could refuse supplies of Russian Italy in final stage of getting The main columns of the installation were
natural gas. It is planned that the scenarios produced in Romania, and all the equipment
developed by the MoE will be submitted to the extra gas supplies from used is new and complies with all the
coalition for evaluation next week. production specifications of the unit.
No gas from Russia has flowed to Latvia, Libya, Algeria to replace With the help of the HPM installation,
Estonia or Lithuania in April, with the Russian Petromidia can increase the volume of diesel
supplier Gazprom demanding to be paid in Russian flows fuel production by about 10%.
rubles. In this context, Rompetrol Rafinare intends
As reported by bne IntelliNews, Lithuania Italy will finalise agreements with Libya to process a total of 5.66mn tonnes of raw
has already made a decision to completely and other countries, including Algeria and materials in the Petromidia refinery, in 2022.
abandon Russian gas supplies, and while Azerbaijan, to obtain gas and replace Russian From the estimates of the company’s
Latvian politicians have expressed similar flows in the coming weeks, Reuters quoted the specialists, with this predicted volume, 1.2mn
sentiments, gas trader Latvijas Gaze – which Italian Ecology Transition Minister Roberto tonnes of gasoline and respectively 2.7mn
is half owned by Russian energy companies Cingolani as saying. tonnes of diesel can be obtained.
including Gazprom – has muddied the waters Italy used to import 40% of the gas it
by announcing that it sees no reason why it required from Russia. Due to the Russia-
cannot pay for gas in rubles. Ukraine war and the cutting off of Russian MOL weighs crude supply
gas, the country has been seeking alternatives.
According to Italy’s plans, the volume contingencies
Romania defers the Offshore of gas that will initially flow from the new Hungary’s MOL is “working on a number
sources is estimated at 10bn cubic metres
Law by another week (bcm). In 2024, the additional amount will of scenarios” regarding the supply of its
refineries in Hungary and Slovakia in case of
reach 20 bcm.
The leaders of the Romanian ruling coalition Libya currently exports small amounts an embargo on Russian crude, the oil and gas
will submit the draft Offshore Law to the of gas to Italy, estimated at only 2.5% of the company said, adding that the primary goal
parliament next week, Social Democrat (PSD) total daily demand. Algeria and Qatar are remains ensuring Central Europe’s secure
leader Marcel Ciolacu told Economedia on at present the main suppliers of gas to the supply
April 5. European country. MOL noted that its Hungarian refinery, in
Oil and gas companies seeking to develop Libya’s state-run oil utility, the National Szazhalombatta, south of Budapest, was built
Romania’s offshore oil and gas resources in the Oil Corporation (NOC), said in March for Russian Export Blend (REB), and the ratio
Black Sea have been urging the government that it would increase its gas output to meet of alternative blends it can refine is limited to
to adopt new legislation to allow major expanding demand for gas in European at most 35%.
investments to go ahead. markets. An embargo on Russian crude and crude
Ciolacu had made the same announcement However, Libya’s Minister of Oil and Gas products would have a significant impact on
a week earlier. Furthermore, the Social Mohammed Oun said the ability of Libya to the operation of the refinery and its secure
Democrat leader provided rather ambiguous make up for planned reductions in Russian supply, while using crude blends of varying
details about the provisions of the law. gas exports to Europe is very limited, and the quality would result in “consequences
According to Ciolacu, the revenues will NOC needs a minimum of five years to attain affecting quality, quantity and operation that
be distributed in proportion of 60% to the the capacity to meet European gas needs. could lead to a reduction in performance and
Romanian state and 40% to the investing Libya does not have liquefaction plants or a refinery malfunctions”, MOL added.

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