Romania’s ELCEN To Buy 200,000 Tons Of Fuel Oil From Petrom For $60M

"The money for the fuel oil is the one we would have paid anyway for purchasing natural gas," the sources told MEDIAFAX.

The sources said 200,000 tons of fuel oil would be enough to produce electricity and thermal power for 40 to 50 days, at an average consumption of 4,000-5,000 tons of fuel oil per day.

 

In the view of the recent cease in Russian gas imports, the thermal plants using natural gas to produce power were obliged to begin using alternative fuels, as coal and fuel oil, in order to supply their clients.

 

Romania’s Economy Minister Adriean Videanu said Wednesday that he asked fuel oil producers, as Petrom, Rompetrol and Lukoil, to deliver fuel to the thermal power plants affected by the gas crisis.

 

Following his request, Petrom announced it may deliver around 70,000 to 75,000 tons of fuel oil by the end of the month, while Rompetrol Rafinare (RRC.RO), the refining unit of the country's second-largest oil company Rompetrol Group NV, would deliver Thursday to power plant CET Midia 2,000 metric tons of fuel oil, out of its total stock of 10,000 tons.

 

Lukoil Romania cannot deliver such type of fuel, because the refinery it owns is closed until mid-February. Moreover, the fuel oil produced by Lukoil in Russia has a higher sulfur content than the one allowed in Romania.

 

In addition, Termoelectrica signed several contracts for the acquisition of fuel oil and coal, the power distributor’s general manager Ioan Ungureanu told MEDIAFAX on Wednesday.

 

Termoelectrica has power production units that use fuel oil, gas and coal as fuel.

 

Romania's Economy Ministry announced Wednesday in a press release that, following the cut of Russian gas supplies to Romania, an "emergency situation" was declared in the energy system.

 

Due to the lack of imported natural gas, the Romanian authorities decided that the thermal power plants would begin using alternative fuels, as coal and fuel oil.

 

Romania has a state reserve of 202,000 tons of fuel oil and the Economy Ministry began talks with the local oil companies to buy additional quantities of fuel.

 

All Russian gas exports to Romania were halted Wednesday morning, after deliveries were cut at Mediesu Aurit gas import station at around GMT0700. Gas supplies via the other gas import station, Isaccea, were cut Tuesday morning.