Romania: Engie: We are not sure there is enough gas stored if a hard winter is coming

Natural gas could become scarce in the event of a hard winter and some industrial consumers will have to be cut off from supply to ensure the priority for the population, but the government does not have an emergency plan for this winter, Engie Romania President Director General, Eric Stab said at the hearings by the Parliamentary inquiry commission regarding the activity of the National Regulatory Authority for Energy (ANRE), reports.

He began by saying that there is a limited amount of gas on the market, and during the summer only a few transactions were made on the centralized market.

“If it will be a hard winter, will there be enough gas? We are not sure. We hope, but we have no guarantee,” Stab said.

According to him, in a deficit situation, the only solution is to cut off some consumers, but he drew the attention that the Government has not drawn up an emergency plan for the coming winter.

“The only solution, if we do not have enough gas, is to cut off the supply to certain consumers, which must be defined by an emergency plan drafted by the Government. This plan existed in the past but needs to be updated as a matter of emergency. The consumers to be cut off should be defined clearly and the order of cut offs as well, if there is a lack of resources,” Stab said.

Stab also said gas prices would be a problem during the winter.

“On April 1, 2017, when the market was liberalized, the price was regulated at RON 60 per MWh. In the summer, the price rose to RON 72-75 and now, if we look at the latest transactions, the prices are of RON 105. This winter, prices will grow even more, will be much higher than last winter, given the current price developments,” the Engie representative said.

He added that Engie has fully complied with its gas storage compulsory level.

“The storage compulsory level was issued very late. However, we have fully met our storage compulsory level, we have stored even more, but the level of the obligation is not set by us, but by ANRE,” Stab said.

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