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    Midia Selects Supplier for Pipeline to Romanian Coast


The developer hopes to launch production in the Black Sea in 2021.

by: Tim Gosling

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Midia Selects Supplier for Pipeline to Romanian Coast

Greece’s Corinth Pipeworks (CPW) announced May 15 that it has selected by The Midia Gas Development Project (MGD) to supply pipes to link the Black Sea field to the Romanian network.

Installation of the pipeline, which will run for 121km beneath the Black Sea to connect the Midia gas block to the coast, is scheduled to start in 2020. MGD took an FID on the production project, which comprises the Ana and Doina gas fields with estimated reserves 320bn ft3, in February, and launched construction. 

MGD is a joint venture of Black Sea Oil & Gas (65%, operator), Petro Ventures Resources (20%), and Gas Plus International (15%). Black Sea Oil & Gas (BSOG) is a subsidiary of Carlyle International Energy Partners.

In early May, BSOG and Romania’s state-owned TSO Transgaz signed a memorandum of understanding for the use and development of the gas transmission pipelines network for shipping Midia output.

Investment in the MGD project is estimated at $400mn. It is expected to be commissioned by early-2021 and produce 1bn m3/yr, equal to around 10% of Romanian consumption.

The field development plan includes the drilling of five production wells and installation of a subsea production system. This will be tied-back to an unmanned production platform via an 18km-long pipeline. The 121km link will then carry the gas to a new gas treatment plant onshore.

Romania’s Black Sea is eyed as a potential alternative supply source to Russian domination in somewhat isolated south eastern European region. Several projects are under development, including large blocks held by Russia’s Lukoil and the giant Neptun, a joint venture between ExxonMobil and Austria’s OMV.

However, FIDs have been delayed by politics. The investors are locked in talks with the Romanian government over a tax regime for offshore production, while uncertainty surrounds an export route, largely due to Hungary’s efforts to build itself a large role in SEE markets by refusing to extend the planned BRUA pipeline to Austria.   

BSOG said in February that its FID was based on an assumption that the owners will be relieved of all the new supplemental taxes and fees as well as any restrictions on the free movement of gas on a fully liberalised market in accordance with EU directives. Romania approved MGD’s plan in April.