The drilling of the offshore gas project in Romanian Black Sea has begun.

On Tuesday, the owners of Romania's Neptun Deep offshore project announced that drilling had begun in the Black Sea. This could lead to the production of one the EU's biggest gas deposits in 2027, which would ease the transition from Russian gas.

Neptun Deep is jointly owned by the oil and gas company OMV Petrom, and Romania's Romgaz. It holds approximately 100 billion cubic metres of recoverable gas. OMV Petrom, a majority-owned company of Austria's OMV, is the largest shareholder in Neptun Deep.

Neptun Deep is expected to double Romania's production of gas and turn it into a net-exporter, according to the energy ministry, as the European Union begins its transition away from Russian gas.

The project will diversify the gas supply to central and eastern Europe. However, it's unclear how much new gas can be exported as Romanian domestic consumption is expected to rise while onshore reserves are set for decline.

Romania currently produces just over 9 billion cubic meters per year, and its consumption is just below 10 billion. Gas-fired power stations of 3.5 gigawatts are expected to be online by 2030, and will phase out coal.

According to Sorin Elisei - a general director in the Ministry of Energy Strategy - annual gas consumption is expected to increase by 25 percent on average between 2025 and 2030.

"On the contrary, we estimate an increase of at least 75% in domestic production by 2027. This means there will be amounts available for exports. Meeting a strategic goal of Romania becoming a supplier of energy security to the region," said he.

Eugenia Gussilov, energy analyst with Romania Energy Center said that the local market was not able to absorb the new gas expected. She added that the potential surplus for export could be as high as "four billion cubic meters, if not more."

The volumes are small, but every billion cubic metres of gas counts in the effort to diversify supplies in this part Europe. Reporting by Luiza Ili Editing by Mark Potter

(source: Reuters)