Romanian state-owned gas company Romgaz has officially terminated its contract with Spain’s Duro Felguera for the long-delayed Iernut natural gas-fired power plant. The Board of Directors approved the decision on 11 September, citing repeated failures by the contractor to meet obligations and deadlines.
A termination notice was sent the same day, with the decision to take effect 31 days after receipt. The 2023 agreement, worth €69 million (excluding VAT), covered the final works and commissioning of the 430 MW plant, along with performance guarantees of €17.5 million. Despite a later addendum of €2 million for extra technical assistance from subcontractor General Electric, progress stalled, prompting government support for contract cancellation.
Energy Minister Bogdan Ivan confirmed his backing for ending the deal and enforcing the performance guarantees.
The Iernut gas unit, 98% complete, has been plagued by delays since the original €268 million contract was signed in 2016, with completion initially set for 2020. Romgaz canceled that first deal in 2021, but the 2023 restart has now ended in the same way, leaving the project unfinished five years past schedule.
The future of the nearly completed facility remains unclear as authorities consider options to complete a project seen as vital for Romania’s energy security.
