Romania's Romgaz, Azerbaijan's Socar to consider Black Sea LNG project

The logo of SOCAR Energy is seen at a company's gas station in Kiev
The logo of SOCAR Energy is seen at a company's gas station in Kiev, Ukraine October 6, 2017. REUTERS/Valentyn Ogirenko

BUCHAREST, Oct 19 (Reuters) - Romanian state-owned gas producer Romgaz (SNG.BX) said on Wednesday it plans to develop a liquefied natural gas project at the Black Sea jointly with Azerbaijan's state energy firm SOCAR.

The two companies signed a memorandum of understanding in capital Bucharest and agreed to perform a feasibility study for such a project, which would include an LNG plant, a regasfication plant and other facilities needed to transport gas from the Caspian Sea.

In September, the gas network operators of Bulgaria, Romania, Hungary and Slovakia proposed shipping additional natural gas supply pledged by Azerbaijan to Europe.

Unlike other countries in the region, European Union member Romania relies less on Russian gas.

It produces just under 90% of its required gas locally through state producer Romgaz, oil and gas group OMV Petrom (ROSNP.BX) and Black Sea Oil & Gas (BSOG). Its natural gas storage facilities have also been filled above a targeted 80% capacity.

BSOG, controlled by private equity firm Carlyle Group (CG.O), launched its offshore gas platform in Romanian waters of the Black Sea earlier this year.

Reporting by Luiza Ilie; editing by Philippa Fletcher

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