Minister: Romanian companies interested in more significant presence on Azerbaijani market

Report's exclusive interview with Mr. Virgil-Daniel Popescu, Romanian Minister of Energy.

- How do you assess the contribution of SGC to the development of European energy systems?

- More than seven years after the start of this ambitious energy project, the first phase of the Southern Gas Corridor has been completed for more than a year, becoming an important source of energy for Europe. The Southern Gas Corridor is a project that has been constantly supported by Romania from the very beginning proving more and more, especially in the context of actual energy crises, its importance for Europe's energy security. It has been a year of extraordinary challenges for the energy sector in all countries, and the Azeri gas volumes transported through the infrastructure of the Southern Gas Corridor came as a safety net for many states in the region. For the first time ever, Azerbaijan’s natural gas reached Europe through a direct pipeline connection. The project was conceived as a scalable one and it is important that these efforts to be continued because there are many countries in Europe interested to join this successful project and that could contribute to the implementation of the future development stages.

- How can Romania expand energy cooperation with Azerbaijan and does it have such a plan?

- Energy is a key area of concrete bilateral cooperation between Romania and Azerbaijan. Since 2018, Romania has participated in the Ministerial Meetings of the Advisory Council of the Southern Gas Corridor, expressing its support for the realization of this important project for strengthening European energy security. Romania and Azerbaijan have a significant potential for strengthening their relations in the field of energy and we are convinced that direct dialogue with partners in Azerbaijan may allow the identification of new directions for cooperation in the energy sector. In both countries, we have very good specialists in the energy sector and we can design energy projects mutually beneficial to support the economic development of our countries. We are interested in a more significant presence of Romanian companies in the Caspian area, including on the Azeri market and we would like also to see a larger presence in Romania of the companies from Azerbaijan.

- Are Romanian companies interested in participating in energy projects, particularly renewable energy projects, implemented by Azerbaijan?

- In the next decade we will see a profound redefinition of the energy sector and we must be prepared for these transformations. We need to move to climate-friendly decisions, a safer and cleaner world in terms of energy and therefore, technology and innovation must be key factors in our future efforts. Romania has a significant potential in terms of wind, hydro, solar, geothermal or biomass sources and important projects are underway or undergoing assessment. Romania's energy priorities will focus on new investments needed to increase the contribution of renewable energy in the energy mix, including exploiting the potential of offshore renewable energy in the Black Sea, large-scale storage of electricity and use of hydrogen produced from renewable and low carbon sources. We know that Azerbaijan has set ambitious targets for the share of renewable and alternative energy in the total energy consumption mix and has under consideration the implementation of some important projects. Oil and gas companies from all over the world need to consider expanding their business area by investing in renewable energy projects and I am convinced that future discussions between relevant companies from our countries will enable us to identify and put into practice important projects in the energy sector, including renewable energy projects.

- How do you highlight the presence of SOCAR in Romania during 2021?

- Following the significant investments made by SOCAR, the company has become an important landmark in the fuel market on the territory of Romania. Beyond the entry of a world-class player on the Romanian fuel market, SOCAR's presence on the Romanian market is welcome for Romanian consumers. Stronger competition is always good news in the field, leading to lower fuel prices and guaranteeing better services in the retail business. Moreover, SOCAR Company could analyze the multiple opportunities to expand its fields of activity in Romania, in the light of the new European paradigm of boosting national economies by obtaining energy from low carbon sources.

- Will the development of the BRUA (Bulgaria-Romania-Hungary-Austria) strengthen cooperation between Azerbaijan and Romania?

- BRUA gas pipeline was completed in November 2020, by the TRANSGAZ company, the operator of the Romanian Gas transmission system, according to the implementation schedule and without any delays. A project of strategic importance at regional level, BRUA gas pipeline creates in practical terms the technical and economic opportunities to transport the gas volumes from the Caspian region using the Interconnector between Romania and Hungary further to the Central European markets. BRUA has a number of important advantages. First of all, it is an already completed gas infrastructure. Moreover, it connects markets with significant gas consumption potential. Thirdly, the proposal to use the BRUA gas pipeline successfully complements the gas transmission Interconnector between Greece and Bulgaria providing a safe and efficient transport route and an important potential link between the Southern Gas Corridor and Central Europe and the Balkans.

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