Russian Gas Supply Cut Off, But Situation Under Control

Daily imports of 4.7 million c.m. to be covered from domestic supplies l Thermal power plants to switch to crude oil and coal

Gazprom yesterday morning stopped all natural gas deliveries through the Isaccea 2 Station, which otherwise ensures daily deliveries of 4.7 million cubic meters to Romania. Consequently, the station was completely shutdown in order to prevent the pipe network from depressurizing and Transgaz performed the necessary technical steps to reroute other gas flows to the major consumption areas affected by the import cut-off.

Officials of the central administration say that the situation is under control and will remain so even if imports are not resumed for several days. Authorities stressed that no consumer was or would be affected. The gas used for heating by both individuals and companies comes from the domestic production of Romgaz, Petrom and several small producers, from underground storage facilities as well as from Russian imports via the Mediesu Auriu Station, which ensures 2.5 million cubic meters per day. Transgaz officials said that Gazprom had terminated deliveries through the Isaccea 2 Station, but did not mention when deliveries would be resumed. "Last week, Gazprom informed us that the 30% decrease in deliveries to Romania would last until 11 January. Now, when deliveries have been cut by 70%, no one knows how long this situation is going to last," the sources said. Minister of Economy Adriean Videanu yesterday told a press conference at Victoria Palace that he had contacted Gazprom representatives in Bucharest, who told him that Gazprom was delivering gas within the normal parameters, but transportation problems were causing a reduction in the quantities actually supplied.

Gazprom did not specify what the problem was and promised Romanian officials that they would provide further information. Videanu also said that he would contact Ukraine via diplomatic channels. All of the Russian gas supplied to Romania is transported via Ukraine. "The daily gas consumption is now 61.5 million cubic meters, of which individuals consume up to 33-34 million cubic meters. This can be easily secured from the domestic production of Romgaz, Petrom and some small producers. Another 26 million cubic meters is secured from the storage facilities, while 2.5 million cubic meters is imported from the Russian Federation via the Mediesu Aurit Station. Measures have been taken to reduce the consumption of thermal power plants, which generate heat for the centralized heating system. Such plants will switch to crude oil or coal in order to ensure normal heating," Minister Videanu told a press conference. He added that the coal and crude oil stocks of the heating plants were enough for 10-12 days and that suppliers of such fuel had sufficient stocks to last for a long time. Premier Emil Boc also told a press conference that "no individual consumer will suffer because of the situation between Russia and Ukraine. We will ensure normal operation of the system for individual and industrial consumer. Other problems we could be facing include a reduction of the imports via Mediesu Aurit and decrease in pressure, if temperatures drop below -15 degrees Celsius. However, we have sufficient domestic resources from the domestic supply and the storage facilities and the technical crews are prepared to intervene on any isolated problems related to pressure." Emil Boc said he had called EU Commissioner for Energy Andris Piebalgs to inform him that Russia had ceased deliveries through the Isaccea 2 Station of Transgaz. "I wanted the European Commission to have an exact status of the situation in Romania, along with the problems reported by other countries. The EU Commissioner for Energy said that EU Commission President Jose Manuel Durao Barroso and he would be involved in finding a solution to the gas supplies," Boc said. The leading gas distributors in Romania, Distrigaz Sud and E.ON Gaz yesterday announced that they had had no problems in ensuring the volumes necessary for consumption. E.ON Gaz stressed that the natural gas deficit caused by reduced deliveries from Russia was not affecting consumers for the time being and that the domestic gas supply was within normal parameters. The company was not forced to impose any restriction upon the customers. In turn, Distrigaz Sud said that gas supplies to consumers were normal. Although some sporadic pressure problems did appear as a result of low temperatures, immediate resolution was achieved and no consumer was affected.