BUCHAREST, Romania – Transgaz and Black Sea Oil & Gas have signed a contract covering transportation of gas from the Midia Gas Development (MGD) project in the Black Sea to Romania’s National Transmission System (NTS).
Fulfillment of the arrangement remains subject to a final investment decision on the development. The contractual period lasts 15 years with a first gas delivery date on Feb. 1, 2021 at a transmission capacity of 1 bcm/yr.
MGD will feature five production wells – one subsea well at the Doina field and four platform wells at the Ana field; and a subsea gas production system over the Doina well which will be connected through an 18-km (11.2-mi) pipeline to a new unmanned production platform on Ana.
A 126-km (78-mi) gas pipeline will link the Ana platform to the shore and a new terminal, with the processed gas delivered into the NTS at a gas metering station on the site.
Black Sea Oil & Gas’ Mark Beacom said: “We continue to move ahead to close out all the remaining milestones, necessary for our shareholder and partners to reach a decision. These milestones include completing all the regulatory requirements, the signing of a gas sales agreement with a gas buyer, having in place all the long lead and major equipment purchase orders, EPCIC and drilling contracts.”
The company will also assess the impact of Romania’s new Offshore Law on the project’s economic viability, he added.
“Transgaz intends to expand the National Transmission System in order to set up an additional entry point for the natural gas coming from the Black Sea offshore blocks,” said Transgaz general director Ion Sterian.
“The project consists of building a new 20-in. gas pipeline designed to carry natural gas at a pressure of 55 bar [798 psi], with a total length of approximately 24.37 km [15 mi] that will connect the Black Sea coast with Transit 1 transport pipeline on the route Black Sea coast – Corbu – Sacele – Cogealac – Gradina.”