Romania To Ensure Gas Exports Towards Hungary By End-2012

The government will take all the necessary actions "to ensure that a bi-directional flow of gas at the border with Hungary is established before the end of 2012," the document reads.

Romania's national gas system is linked with the Hungarian one since October 2010, through Arad-Szeged pipeline. Currently, Romania can only import gas through the pipe, but export is possible after some investments.

"Technically, the gas flow can be inverted, so that export is possible. The deadline in the memorandum was negotiated and not imposed by the Commission," sources from the Economy Ministry told MEDIAFAX.

According to the MoU agreed with EU's executive arm, the government will present, "as soon as possible," a roadmap towards gas exports. It also has to remove legal and regulatory barriers to the exports by the end of 2011.

Romania has also committed to lift legal, regulatory and physical barriers to cross-border trade of electricity and gas and to establish an intraday electricity market by December.

On the other hand, Romania will have to ensure an "effective unbundling" of electricity and gas networks and their operation "in a transparent and non discriminatory manner."

The gas pipeline and the power grid are administered by two state-owned companies, Transgaz (TGN.RO) and Transelectrica (TEL.RO).

The government must ensure, by June, "a strong and independent" energy regulatory authority (ANRE) and make sure it is properly equip to function.

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