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Recent Gas Price Trends in Romania Amidst European Market Changes
The recent decline in gas prices across Europe due to market fluctuations has not been reflected in Romania. Instead, prices in Romania have surged over the last two days, increasing by 10 lei/MWh—approximately 7%—and reaching their highest levels in eight months. This situation can be attributed to regional market dynamics, particularly a reduced supply stemming from maintenance work on the Trans Adriatic Pipeline (TAP), which supplies Azerbaijani gas to Southern Europe, according to Profit.ro.
European Market Reference Prices
On the most significant European market, the Dutch Title Transfer Facility (TTF), the reference price for gas fell by 5% on Monday, settling at 34.8 euros/MWh. This drop was influenced by increased Norwegian deliveries and global market sales, fueled by concerns over a potential downturn in the U.S. economy.
Price Movements in the Romanian Market
Contrarily, on the Romanian Commodities Exchange (BRM), the average price of gas for delivery on Monday rose by nearly 9 lei/MWh, climbing from 146.9 to 155.6 lei/MWh. The following day, it increased further by 1 lei/MWh, reaching 156.4 lei/MWh. This marks the highest price recorded in Romania over the last eight months, with the last instance of surpassing this level occurring on January 15.
Gas Supply Dynamics
In terms of gas imports from Bulgaria, there has been a noticeable decrease in recent days. For instance, only 65 GWh were reported to arrive in Romania on Tuesday, down from the previous average of 75 GWh/day. This reduction is due to the announcement from TAP operators regarding maintenance work on the gas transportation system along the Southern Gas Corridor, which is expected to lead to decreased volumes, despite the work being conducted upstream of the TAP itself.
Maintenance and Future Expectations
The consortium has stated, “Due to maintenance activities, although both the TAP transportation system and its capacity will remain fully available, the gas flows entering TAP at the Kipoi interconnection point are likely to be reduced. Consequently, the utilization of TAP products at all interconnection points (Komotini, Nea Mesimvria, and Melendugno) may be affected.” TAP AG has confirmed that adjacent Transmission System Operators (TSOs) have been notified and an urgent notification was published to inform market participants in accordance with European legislation.
The consortium anticipates that normal services will resume once the scheduled maintenance is completed.
Recent Trends in Gas Inflows to Europe via TAP
Recent data shows a decline in gas flows entering Europe through TAP, highlighting the impact of maintenance activities on supply levels (source: ENTSOG).
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Gas Supply Suspension in Turkey Due to Maintenance Work
According to a recent announcement, a scheduled review will take place between August 5 and August 11. The Turkish state-owned company BOTAS has informed that the supply of Azerbaijani gas to Turkey will be temporarily halted for a few days due to necessary maintenance on the export pipeline.
Details of the Maintenance Schedule
The company’s statement indicated that the interruption in gas supply is a result of planned maintenance and repair activities on the pipeline that transports gas from the Shah Deniz field. Specifically, the gas supply to Turkey’s national distribution network will be disrupted at the Turkgozu entry point from July 31 to August 5, followed by a suspension at the TANAP Seitgazi entry point from August 5 to August 9.
The Role of TAP in European Gas Supply
The Trans Adriatic Pipeline (TAP) is a crucial component of the Southern Gas Corridor, delivering 10 billion cubic meters of Azerbaijani gas annually to the Balkans and Italy. There are plans to potentially increase this capacity to 20 billion cubic meters in the future, enhancing energy security in the region.
