Romanian natural gas producer Romgaz has concluded an agreement worth 268 million euros (without VAT) with a consortium of Spanish company Duro Felguera and Romanian Romelectro for a turnkey project for the construction of new power plant within its Iernut thermal power plant (TPP).
According to the statement from the company, this project will streamline Romgaz’ activity by increasing the efficiency of TPP Iernut to a minimum of 56 %. It will also increase the operating safety and will help the company to comply with the environmental requirement on the emissions of CO2 and NOx. The project will be financed from the company’s own resources and with funds from the National Investment Plan (NIP).
The deadline for the completion of the new combined cycle power plant is 36 months from the effective date of the contract, which shall be within 5 working days from the date the NIP financing is approved. The estimated value of the contract exceeds 10 % of Romgaz’ turnover for the financial year 2015.
Romgaz took over Iernut thermal power plant in 2013 from Bucharest-based thermal energy producer ELCEN in exchange for deleting a 145 million euros debt.
