The signing of an agreement by Austrian energy company OMV and German Uniper to supply gas from a Black Sea project in Romania's exclusive economic zone is attracting attention across Europe.
A five-year contract to supply 15 terawatt-hours of gas from the Neptun Deep project off the coast of Romania’s Black Sea has been signed, putting Romania at the centre of the EU’s energy race. The project is located in water depths ranging from 100 metres to 1,700 metres and is expected to start production in 2027.
With estimated reserves of 100 billion cubic meters of gas, Neptun Deep is one of the largest natural gas fields in the EU, opening up the opportunity for Romania to become the EU's leading gas producer and a net gas exporter for the first time in its history.
Romania holds an estimated 200 billion cubic meters of offshore gas reserves, which could change the regional energy landscape. The deal comes at a time when the EU has reduced its gas purchases from Russia following the outbreak of the Ukraine conflict and Kiev has just ended the transit of Russian gas to Europe through its territory from early 2025.
The combined contract volume of OMV and Uniper represents about 1.5% of Germany's gas imports by 2024 and would be the first deal to support the long-awaited deepwater project, more than a decade after gas was first discovered in Romania's Black Sea region, Reuters reported.
“Neptun Deep can produce 7 to 8 billion cubic meters per year, generating revenues of more than $25 billion – equivalent to 3.5 years of Romania’s defense spending,” said George Scutaru, director of Romania’s New Strategy Center.
According to the Atlantic Council, Romania is already self-sufficient in about 80% of its domestic gas needs, and the situation will improve once Neptun Deep comes online.
Production from Neptun Deep and existing projects is enough to meet Romania's annual consumption of 12 billion cubic meters, while also having more than enough to export to neighboring countries, reducing dependence on Russian gas.
Eastern European countries such as Moldova, Bulgaria, Serbia - with a combined consumption of less than 10 billion cubic meters - may switch to Romania, replacing gas from pipelines such as Russia's TurkStream. Moldova's annual gas consumption is 2.9 billion cubic meters, Bulgaria's is 3 billion cubic meters, and Serbia's is 2.4 billion cubic meters.
Despite the great opportunities, Romania is also expected to face threats from Russia, which has been strongly opposed to offshore gas projects in the Black Sea. Russia’s annexation of Crimea in 2014 brought Romania’s exclusive economic zone (EEZ) close to that of Russia.
Whether offshore gas facilities located within the EEZ are protected by NATO Article 5 or Article 6 remains a question.
