In July 2024, the European Union adopted Regulation 1787 aimed at reducing methane emissions in the energy sector. This regulation, which covers both EU oil, gas and coal production and energy imports, has major implications for the Romanian energy sector, given the significant number of existing wells and installations in the country.
Methane, an extremely potent greenhouse gas, has a global warming potential 80 times greater than carbon dioxide over 20 years. About 60% of methane emissions come from human activities, making it imperative to reduce them to combat climate change. Romania faces considerable challenges, with one of the oldest energy infrastructures in Europe, with some 54,000 wells, of which 10,701 are active and 43,914 inactive, and more than 2,200 oil and gas production technology facilities. Under the new rules, all of these installations must be assessed for methane leaks, and economic operators will be required to submit to the authorities a program of repairs and replacements to reduce these emissions. The European Commission will start monitoring the situation continent-wide in 2026, using satellite data and information from certified data providers. The Intelligent Energy Association has estimated that the compliance process will take at least 10 years and cost billions of euros, given the complexity of design, construction, installation and permitting. Implementation costs will be borne by companies in the sector and will be reflected in consumer bills. The lifting of price caps from next spring is expected to increase gas bills by up to 31% for household and commercial customers, according to the Intelligent Energy Association. This regulation imposes a fast and costly adaptation for the Romanian energy industry, being an important step towards reducing methane emissions, but also a significant challenge for the energy sector and consumers.