Romgaz will invest heavily in offshore partnerships in the Black Sea and in renewable energy

By Jerom Bolt
The state-owned company Romgaz, one of the two largest gas producers in Romania, has planned investments of 15.69 billion lei by 2025, mostly in partnerships on offshore projects in the Black Sea, writes News.ro.
The 2020-2025 development strategy is to be approved by the General Meeting of Shareholders on June 15. ”Romgaz’s priority investment directions are oriented towards: continuing the geological research works through new drillings and geological prospecting for the discovery of new natural gas reserves; developing the production potential by ensuring new capacities on the existing structures; improving the performance of endowed installations and equipment and increasing operational safety; identifying new opportunities for growth and diversification “, show company documents.
Of the total amount of 15.69 billion lei, most of it, 5.47 billion lei, will be directed to “associations / partnerships in offshore projects (Black Sea) and electricity production / storage”.
Another 5.38 billion lei will be invested in onshore natural gas production, through drilling works, exploration and exploitation wells, surface technological installations at the remaining gas wells, gas collecting pipes, as well as in natural gas drying stations and stations natural gas compression, but also in modernizations and repairs to operating wells and equipment and machinery and in the development of utility infrastructure.
The company wants to invest 3.66 billion lei in electricity production, in the thermal power plants from Iernut and Mintia, but also in renewable energy sources.
Also, in the petrochemical part, the company will invest 1.17 billion lei in methanol production by building its own methanol production plant.
Regarding the structure of financing sources, 49% are own sources, 44% are attracted sources, and 7% European funds.
Romgaz registered in the first quarter of 2020 a net profit of 571.9 million lei, higher by 5.5% compared to the same period last year, while gas production decreased by 4.7%, to 1.362 billion meters cubic. Business amounted to 1.43 billion lei in the first three months, down 16.51%. Romgaz is the largest producer and main supplier of natural gas in Romania. The company is admitted to trading on the Bucharest Stock Exchange (BVB) and the London Stock Exchange (LSE). The main shareholder is the Romanian state with a participation of 70%. In 2013, Romgaz expanded its field of activity by assimilating the Iernut thermal power plant, thus becoming a producer and supplier of electricity. Romgaz has a capitalization of 11.31 billion lei and is controlled by the Ministry of Economy, Energy and Business Environment.