Romanian gas producer Romgaz (BVB: SNG) has filed an action with the European Court of Justice against the European Commission, requesting the annulment of certain regulations that impose CO2 storage quotas on oil and gas companies. The company considers the quotas disproportionate.\u00a0<\/p>\n
It is the first time that Romgaz has initiated a direct action against the European Commission, a step motivated by possible economic and technical implications of the regulation, including the need for investments amounting to hundreds of millions of euros and the risks associated with carbon dioxide storage projects in onshore reservoirs.<\/p>\n
According to EU normative acts, Romgaz has to store 4.2 million tons of CO2 per year.<\/p>\n
Representatives of the company, majority-owned by the Romanian state, say that the measure generates significant economic and technical risks for European energy producers. Moreover, the regulation is deeply unfair, according Romgaz.<\/p>\n
\u201cThe storage obligation of Romanian companies represents more than 20% of the EU storage target, while the country is responsible for only about 3% of the total CO\u2082 emissions of the EU manufacturing sector between 2020\u20132023,\u201d the company said in its action, cited by Ziarul Financiar<\/a>.<\/p>\n The Romanian gas giant also mentions different scenarios to help fulfill the requirement while lowering costs.<\/p>\n “Among the options analyzed are investments in CO2 storage facilities in depleted natural gas fields or saline aquifers. In addition, Romgaz has initiated in-depth technical studies and analyses to identify the potential of such deposits and to evaluate the feasibility of transforming them into CO\u2082 storage facilities. We remain firmly committed to implementing the policies of the European Union, including the Green Deal,\u201d said Romgaz general director Razvan Popescu.<\/p>\n