Romgaz, a prominent natural gas producer in Romania, has secured an extension for public funding to advance the construction of the Iernut combined-cycle gas power plant. This decision follows a government resolution made at the close of 2025, which modified the stipulations of the National Investment Plan. The revised rules now extend the deadline for the completion and commissioning of funded projects to 31 December 2026, with eligible cost reimbursements allowed until 30 June 2027. Consequently, Romgaz formalized an addendum to its financing contract for the 430 MW Iernut plant on 31 December 2025, adjusting the project timeline and extending the contract duration.
The Iernut project has been allocated approximately €64 million in state funding; however, persistent delays have necessitated multiple requests for deadline extensions from Romgaz. Current data from the Ministry of Energy indicates that physical completion of the plant is at 97.5%, while financial execution stands at 85.9%. Progress under the latest construction contract is reported to be slightly over 90%. To expedite completion, Romgaz intends to assume the role of general contractor through a dedicated project unit, which will take charge of key works and service contracts previously managed by subcontractors associated with Duro Felguera. The company is committed to finalizing and commissioning the facility by late 2026.
The construction phase commenced under a contract established in 2016 with Duro Felguera and Romelectro, initially aiming for operational readiness by early 2020. Following termination of this contract in 2021, Romgaz re-engaged with Duro Felguera in 2023 due to their ownership of critical software, documentation, and intellectual property necessary for project advancement. Although this new agreement set a completion target of 19 December 2025, it was again terminated when Duro Felguera attempted to suspend work in August—a request that Romgaz declined. Company management has emphasized that identifying outstanding tasks, initiating procurement processes, and securing new contracts will require additional time. They estimate that approximately nine months will be needed for final construction and commissioning efforts. While Romgaz aims for a completion date by the end of 2026, they also recognize that several risks remain outside their control.
General Electric is anticipated to play a crucial role during this final phase as a key partner. The company has provided essential gas turbines and distributed control systems and will assist with the final commissioning of the power plant.
