Gazprom's Headquarters has hosted today a working meeting between Alexey Miller, Chairman of Gazprom's Management Committee and Ioan Donca, Ambassador Extraordinary and Plenipotentiary of Romania to Russia.

The parties discussed the prospects for bilateral cooperation in the oil & gas sector, including for deliveries to and increased transit of Russian gas across Romania.

Given the decreasing natural gas extraction in Romania the parties looked into joint construction and upgrading of UGS facilities in Romania.

Ioan Donca noted that the economic cooperation between Russia and Romania in the oil & gas sector was of a long-term and mutually beneficial nature and announced the Romanian Government’s intention to provide support for Gazprom’s projects in Romania. Alexey Miller pointed out that Gazprom as the main gas supplier to Romania was set to go on supplying Romanian natural gas needs.

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Natural gas plays a leading role (40.7%) in the Romanian primary energy mix and is followed by oil (28.5%), coal (18%) and nuclear energy & hydro power (12.8%).

Romania’s proved natural gas reserves average 305 bcm.

In 2005 Romania consumed 4.5 bcm of Russian natural gas, 0.4 bcm up on 2004, which accounted for 86% of overall imports.

The state owned company Transgas is operator of the national gas transmission system comprising 11,000 km of gas mains. The Romanian system is connected to Ukrainian transmission networks and provides capacity for gas import and transit to Bulgaria, Macedonia, Turkey and Greece.

Over 2005 Romania transited 15.5 bcm of gas, 15% up on 2004.

There are currently discussions underway in Romania to construct interconnector pipelines with the neighboring countries including Bulgaria, former Yugoslavia and Moldova.

First supply of Russian natural gas was launched to Romania in 1979, with a total of 105.4 bcm delivered as at April 1, 2005.