Romgaz, the natural gas producing company, has concluded an agreement of EUR 268 million (no VAT) with Duro Felguera and Romelectro for performing the turnkey project “Development of CTE Iernut Power Plant by building a new combined cycle CCTG power plant.”
“One of the main strategic direction of S.N.G.N. Romgaz is to consolidate its position on energy market. In this case, in the field of electric power generation, the performance of this project aims to make the activity more efficient by: increasing CTE Iernut Power Plant efficiency to a minimum of 56 percent, compliance with the environment requirements (NOx, CO2) and improving safety operations. The project is financed from own resources and funds from the National Investment Plan (NIP),” the report sent to Bucharest Stock Exchange (BVB) reads.
According to Romgaz, the estimated value of the new contract exceeds 10 percent of the net turnover for financial year 2015.
The works completion term is of 36 months from the effective date of the contract. The contract shall be effective within 5 working days from the date the NIP financing is approved.
Romgaz took over Iernut Power Plant in 2013 from Electrocentrale Bucuresti, for a debt of RON 653 million.
Duro Felguera is a Spanish company specialized in contracting turnkey industrial projects. Romelectro is a group of Romanian engineering and installation companies in the energy sector.