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Romania’s Romgaz rejects 20-year US LNG contract amid projected losses

Romanian gas producer Romgaz has rejected a proposed 20-year US LNG contract. The company said its assessment pointed to potential annual losses ranging from €50 million to €310 million, depending on US and European gas prices.

The offer was put forward by Greek company Atlantic–See LNG Trade. It envisaged LNG deliveries through the Alexandroupoli LNG terminal, with pricing linked to the US Henry Hub benchmark.

Cost estimates versus European gas benchmarks

In a December 2025 assessment, Romgaz estimated delivered costs at approximately €33–42/MWh. This was compared with European TTF forward prices of €30–40/MWh for the period 2030–2040.

The company concluded that the proposed deal would become attractive only under a favourable combination of relatively low US prices and higher European prices. The assessment therefore tied the economics of the contract to movements in both regional benchmarks.

Domestic supply outlook and contract duration

Romgaz also cited the length of the commitment as a factor in its decision. The company expects Neptun Deep and other domestic developments to strengthen Romania’s gas supply.

This outlook reduced the case for a two-decade import commitment, according to Romgaz’s assessment. The company’s evaluation linked the long-term LNG requirement to expectations for domestic production growth.

Vertical Gas Corridor debate over US LNG volumes

The rejection feeds into a broader political debate on increasing US LNG deliveries through the Vertical Gas Corridor. The corridor connects Greece, Bulgaria and Romania.

For Romgaz, the assessment highlighted a commercial tension between diversification through LNG and the economics of a long-term structure. It pointed to transport costs, benchmark risk, and prospective domestic production as factors affecting the overall case for commitment.

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