Romanian gas producer Romgaz and Azerbaijan’s energy firm Socar are joining forces to develop a liquefied natural gas (LNG) project in the Black Sea.
In that regard, the two state-owned firms signed a memorandum of understanding in Bucharest on Wednesday, which sets the basis of a new cooperation between the two companies, according to a statement by Romgaz.
Through this memorandum, the two firms formalize their intention to explore the opportunity of jointly developing a liquefied natural gas project at the Black Sea, Romgaz said.
Moreover, the project would consist of a liquefaction plant, an LNG regasification plant, as well as all other installations and facilities needed in order to transport natural gas from the Caspian region into Romania, the statement said.
Romgaz said the two firms intend to initiate the joint preparation of a study to identify the technical, financial, and commercial feasibility of such project.
Based on the results of such study, the two firms would start negotiations with the aim of reaching an agreement on the terms and conditions of the development of the Black Sea LNG project, it 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,” Romgaz said.
The firm did not provide any additional information regarding the project.
This is not the first that Socar and Romgaz are joining forces for an LNG project.
The two firms previously worked on the AGRI (Azerbaijan-Georgia-Romania-Hungary Natural Gas Interconnector) LNG project along with partners from Georgia and Hungary, but this development never materialized.