Romanian state-owned gas producer Romgaz and Azerbaijan’s state energy firm SOCAR have agreed to jointly explore the feasibility of developing a liquefied natural gas (LNG) project in the Black Sea.

The two firms have signed a memorandum of understanding (MoU) to undertake a feasibility study for the proposed project.

The project would include the construction of an LNG plant, a regasification plant, and other installations and facilities required to supply natural gas into Romania from the Caspian Sea.

The study will focus on identifying the financial, technical, and commercial feasibility of the LNG project.

Based on the study results, the two companies will commence negotiations to reach an agreement for the development of the Black Sea LNG Project.

In a statement, Romgaz said: “In the current energy context, the initiative of the two companies represents a new opportunity to ensure access to gas resources from the Caspian Sea region for the Romanian and regional markets, with a significant positive impact on the energy security of countries in Central and Southeast Europe.”

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By GlobalData

Ziarul Financiar quoted Romania Prime Minister Nicolae Ciuca as saying: “It is a new project, both for us and for Azerbaijan.”

Ciuca said the country is also considering ways to receive gas from the Caspian area via the trans-Anatolian pipeline (TAP) through Turkey-Bulgaria-Romania, and from Romania to the other beneficiary countries including the Republic of Moldova.

“It is a commitment of us and of Azerbaijan to be able to support the Republic of Moldova with the necessary amount of gas,” Ciucă added.