The Romanian antitrust regulator, the Competition Council (CC) has begun an investigation into Romgaz and OMV Petrom over the conditions for gas delivery to their own plants.
An excerpt from the CC press release reads: "The analysis was launched in February and the Competition Council cooperates with the Romanian Energy Regulatory Authority to examine whether the power plants of the two natural gas producers have benefited from different conditions compared to those in which SNGN Romgaz SA and OMV Petrom SA provide natural gas to other consumers in Romania."
The Council says that between them Romgaz and OMV Petrom produce over 94% of Romania's total annual gas production.
Image: Romgaz and OMV Petrom
Both companies have integrated structures which include energy plants that use natural gas as fuel.
Romgaz is 70% owned by the Romanian government and specialises in geological research with the aim of discovering hydrocarbons, production, storage, commercialisation and supply of natural gas. The company produces through the Electric Power Generating Branch (SPEE), which includes the lernut thermal power plant which has a capacity of 600 MW and generates around 5% of Romanian national electricity. Romgaz also runs an experimental project whereby the natural gas produced at the two wells in Cojocna are used to power two electricity plants.
Petrom was privatised in late 2004 and bought by Austrian oil company OMV. Present in Romania as both a producer and supplier, the company owns the Brazi power plant which, with its 860 MW production, provides around 10% of the national electricity demand.
Both companies had their offices raided in June 2016 by EU antitrust regulators under suspicion of blocking gas exports to other countries within the Union and thereby breaking competition rules. The European Court of Auditors announced that the investigations had concluded that Romgaz had sold €35.6-million worth of gas against regulations.
The current investigation is continuing.
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