SNGN ROMGAZ SA
ROMGAZ
Gas production and supply
ID: 829148891577-27
Lobbying Activity
Response to Oil and gas producers' contributions to the 2030 Union CO2 storage objective
15 Apr 2025
ROMGAZ is the largest Romanian gas producer with a significant role in the countries energy supply security, and is one of the entities significantly impacted by the CO2 storage obligation provided by the Net Zero Industry Act. As much as we welcome all legal initiatives at EU level encouraging CO2 sequestration and the development of a CCS market, we must emphasize that the formula proposed in the Commission Delegated Regulation for the calculation of the share of the individual pro-rata contribution of the obliged entities has a disproportionate effect. The development of a functional CCS market undoubtedly depends on the demand for the storage capacities, while the current proposal envisages only the potential storages without linking them to the large industrial CO2 emitters. As such, considering the absence of a CO2 transportation infrastructure and the high costs for such developments the CCS integrated value chain will be massively discouraged. Therefore, we come with a proposal for a formula that ensures a much more balanced approach. The proposed formula adjusts the cumulated production of each obligated entity with the cumulated manufacturing sector CO2 emissions of its respective Member State over the same period (1 January 2020 - 31 December 2023): (Adjusted production of the entity) / (total adjusted production of all obligated entities) x 100 = % of 50 million tonnes of annual CO2 injection capacity, Where the adjusted production of the entity is the Cumulative production 1 January 2020 - 31 December 2023 of the entity multiplied by the adjustment factor corresponding to the relevant Member State, defined as follows: (Cumulative manufacturing sector CO2 emissions 1 January 2020 - 31 December 2023 of the Member State) / (Average Cumulative manufacturing sector CO2 emissions 1 January 2020 - 31 December 2023 of all EU Member States).
Read full responseMeeting with Maroš Šefčovič (Executive Vice-President) and
16 Apr 2024 · IOGP Roundtable