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Romgaz announces six-month delay for CTE Iernut plant

Published 04/12/2024, 15:36
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BUCHAREST - Romanian state-owned gas producer S.N.G.N. Romgaz S.A. has reported an extension to the completion schedule of its CTE Iernut power plant project. The company revealed that the deadline for the commissioning of the new combined-cycle thermoelectric power plant with gas turbines is now set for June 2, 2025. This information was disclosed in a current report filed with the Bucharest Stock Exchange (BVB) and the London Stock Exchange (LON:LSEG) (LSE).

The project, initially contracted on April 3, 2023, with Spanish engineering firm Duro Felguera S.A., is part of a significant investment to complete and commission the CTE Iernut facility. The extension of the execution period by six months is in line with the contractual provisions. The contractor is expected to carry out all necessary works, including passing the tests on completion of the works and fulfilling all contractual conditions related to the commissioning reception.

In addition to the revised project timeline, the Romanian Government has also extended the completion date of the investment in accordance with the National Investment Program (NIP) until June 30, 2025, as per Government Decision no. 1489/2024.

Romgaz's announcement to shareholders and investors comes as the energy sector closely monitors the progress of infrastructure developments amid the growing demand for energy and the transition to cleaner power sources. The CTE Iernut project is seen as a strategic development for Romania's energy infrastructure.

The initial signing of the procurement contract with Duro Felguera S.A. was reported in April 2023. Romgaz, which is traded under the ticker symbols BVB:SNG and LSE:SNG, has not disclosed the financial implications of the delay or any potential impact on the project's overall budget.

The completion of the CTE Iernut power plant is a notable development in Romania's energy sector, with the new facility expected to contribute to the country's energy stability and efficiency once operational. The information regarding the delay is based on a press release statement from Romgaz.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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