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Gas producers might have to sell 20-30% of output on free market.

February 23, 2014

Gas producers in Romania will be required to trade some 20-30% of their output on the free market, energy minister Constantin Nita said as quoted by news agencyMediafax. Gas suppliers should also sell the same share of gas on the free market, Nita added.

The regulations would be visibly aimed at stimulating the free natural gas market that is being designed under the agreements with the IMF and the EU.

Formally, there are two natural gas floors in Romania one operated by power market operator OPCOM and the other by the commodities exchange BRM, but there is no trading yet. OMV Petrom, one of the two major local natural gas producers, announced an auction for February 21.

OMV Petrom and Romgaz are responsible for nearly the entire local gas output which in turn accounts for some 90% of the consumption [after the consumption has dropped in response to higher prices].

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Source: IntelliNews - Weekly Reports

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