The European Union's Regulation (EU) 2024/1735 on establishing a framework of measures for strengthening Europe's net-zero technology manufacturing ecosystem is a risk for natural gas producers, as it can affect their ongoing investments, according to Romgaz Deputy General Manager Aristotel Jude.

'Because there was a lot said about the problems that had to be solved, I would move on to a higher threshold, namely the European regulations that can have an impact on companies that produce natural gas, and here I would refer to Regulation 2024/1735, establishing a framework of measures for strengthening Europe's net-zero technology manufacturing ecosystem, that is the NZIA regulation. You know very well that natural gas companies will be under an obligation to store CO2 at a certain level by the end of 2030. For that, massive investments are needed, and it is necessary to demonstrate that the investments are technically and economically feasible. I would not like to refer to the technical aspects related to the conversion of a depleted natural gas deposit into a CO2 storage deposit, because, in reality, direct conversion does not exist, new investments are needed, drilling, new wells, construction, pipelines, capture facilities that in reality cost billions upon billions of euros,' Jude said at a specialist event.

He suggested the start of a dialogue on this regulation.

'I reccomend, because time is very short, that there should be a round table and a dialogue regarding this regulation, the delegated regulation and the decision of the European Commission that establishes the level of obligation. AndI would like to remind you that the two large producers have a significant share of CO2 storage, and let's not forget that in the end we have to discuss the affordability of the products that we produce, even if we have repeated the deadline twice, because, in reality, the products must be affordable for the final end consumers. If we were to make these investments, our fear is that they will no longer be bearable. If we were to show that there have been countless discussions in Romania regarding the regulation and the impact study, in reality the NZIA regulation did not have an impact analysis and technical-economic feasibility studies, because in reality onshore there are no CO2 storage deposits that work and that have demonstrated so far the feasibility from a technical and economic point of view. I think that for natural gas producers, the NZIA regulation is a risk motivated by the fact that it can affect our ongoing investments, because companies have a certain capacity to invest through internal sources, external sources, reinvestment of dividends and so on. Or, the Romgaz company delivers massive investment programmes, and if such investments are mandatory, we must also find their source and feasibility,' Jude said.

Jude on Monday participated in a conference on present and future uncertainties and opportunities for energy investments, organised by Focus Energetic at Palace of Parliament. AGERPRES (RO - writing by: Oana Tilica; EN - writing by: Corneliu-Aurelian Colceriu)