Romania switched to net gas exports in late November for the first time in nearly a year and a half, as weak demand allowed it to balance on domestic production and storage alone.
Romania was a net exporter on 26 November and 28 November, according to data from system operator Transgaz. The country's net imports had already been weak earlier in the month and averaged 26 GWh/d on 1-28 November, well below the five-year average for the period of 87 GWh/d.
The main driver behind the switch to net exports was weak consumption. Domestic consumption of 312 GWh/d on 1-28 November was well below the five-year average for the period of 451 GWh/d, even with weather that was colder than normal over some of the period.
Domestic production has held roughly in line with recent-year averages, following a boost since June's start-up of the Midia field. Output was 262 GWh/d on 1-28 November, about 5 GWh/d short of the five-year average.
And Romania relied more on storage to meet demand during recent colder weather, avoiding an increase in imports. Withdrawals reached 109 GWh/d on 21-28 November. That said, average net withdrawals of 21 GWh/d on 1-28 November were still below the five-year average for the period of 66 GWh/d, as injections continued later than usual thanks to muted demand.
Balancing without Russian gas
Romanian firms might rely on domestic production and storage as far as possible this winter to avoid more costly imports, given their lack of access to Russian gas.
Romania used to import Russian gas in winter, when demand exceeds domestic production. But following Moscow's imposition of sanctions on its former subsidiaries, including WIEE Romania, Romanian firms no longer have any way of importing Russian gas, as their contracts are with these intermediaries and not directly with Gazprom's export arm.
And several market participants told Argus that the country's windfall tax has discouraged international firms from trading gas in Romania, weighing on liquidity. Romanian gas and electricity traders' margins have been taxed at 98pc since the start of September.
In a sign of an increased focus on domestic supply ahead of imports, the Romanian subsidiaries of Engie and Eon — the country's biggest suppliers — concluded deals with producer Romgaz for winter gas supply.
And Romanian firms that produce gas onshore or offshore are obliged to sell output at a capped price to residential suppliers and electricity generators, but only for the amount needed to cover public consumption. The ceiling price is set at 150 lei/MWh.
Romanian energy regulator Anre has also since April obliged suppliers to store at least 30pc of the gas in their portfolio intended for consumption by end users, encouraging heavier reliance on domestic storage.
Romania becomes attractive transit market
Some of the gas entering Romania has transited on to the higher-priced Hungarian market, with exports at Csanadpalota reaching new highs recently following a capacity expansion.
Exports to Hungary reached 57 GWh/d on 21-28 November, the highest they have been following a capacity expansion to 73.4 GWh/d from 50 GWh/d since the start of October.
Imports from Bulgaria at Negru Voda have closely matched exports at Csanadpalota, suggesting that firms may have purchased gas from Bulgaria and Greece and transited the supply through Romania on to Hungary.
And some of the supply entering Hungary could have been shipped on to other markets. There was a reconfiguration of flows around Hungary in November, with the country taking nearly no gas from Austria since the middle of the month and beginning brisk withdrawals from storage while exporting more to Slovakia.
