Legal & Tax Alerts

Gas release programme on the centralised Romanian markets

Order of the National Energy Regulatory Authority no. 79/2020 on the obligation to offer natural gas on centralized Romanian markets (“Order no. 79/2020“), which was published[1] in the Official Gazette on May 18, 2020, introduces a gas release programme on the national market. The normative act will enter into force on June 1.

Order no. 79/2020 targets natural gas producers whose annual production exceeds 3,000,000 MWh and sets forth their obligation to offer the sale of quantities of natural gas, in a transparent, public and non-discriminatory manner, on the centralized Romanian markets.

The quantities of natural gas related to the supply obligation are established by applying an annual percentage rate of 30% to the volume of natural gas production achieved by each holder of the obligation in the calendar year 2019, minus the following quantities:

» the quantities for technological consumption approved by the National Agency for Mineral Resources for 2019;

» 3% representing the average annual decline of natural gas reserves established on the basis of production forecasts for 2020.

The programme will be applicable between June 1, 2020 and December 31, 2022, and the delivery of natural gas thus offered will be made in the form of standardized products at monthly, quarterly, seasonal or annual levels, starting with July 1, 2020. The quantitative share of these standardized products is of 30% for monthly products, 20% for quarterly and seasonal products and 30%, respectively 0% in 2022 for annual products. The periods for which the quantities of natural gas are determined are the following:

» June 1, 2020 – December 31, 2020;

» January 1, 2021 – December 31, 2021;

» January 1, 2022 – December 31 2022.

The holders of the obligation to offer natural gas and the quantities mandatory to be offered on the centralized markets are included in the annex to Order no. 79/2020.

The maximum starting price of the offers of standardized products will be established by the National Energy Regulatory Authority on the basis of a calculation formula, by reference to:

» the last settlement price published by Central European Gas Hub AG for the Austrian market for the respective product offered and the weighted average price of similar products registered at national level, for the period June 1, 2020 – December 31, 2020;

» the weighted average price of similar products registered at national level in the last 6 months prior to the auction session, for the period January 1, 2021 – December 31, 2022.

The process of offering the quantities of natural gas as per Order no. 79/2020 will take place on electronic platforms managed by centralized market operators through a double auction procedure, according to the procedure developed by the centralized market operator. Additionally, the centralized markets operators have the obligation to publish daily, separately, all the transactions for the products offered according to Order no. 79/2020, made on the platforms they manage.

Producers and buyers of natural gas traded according to the gas release programme have the obligation to conclude sale-purchase agreements after trading, according to a standard agreement attached to Order no. 79/2020.

 

[1] Official Gazette of Romania, Part I, no. 409 dated 18.05.2020.

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