May 27 (SeeNews) - Romanian operators of undergound gas storage facilities Depogaz and Depomures will invest 192 million euro ($210.4 million) to raise the capacity of their two warehouses located in Sarmasel and Targu-Mures, the country's energy regulator said.
Following the investment, Romania's total underground natural gas storage capacity will increase to 3.82 billion cu m from 3.07 billion cu m, the National Energy Regulatory Authority, ANRE, said in a press release on Tuesday, adding that it has approved the two companies' investment plans.
Depogaz will expand the underground storage capacity at the Sarmasel deposit to 1.55 billion cu m per cycle from 900 million cu m per cycle, while the storage capacity of Targu Mures deposit owned by Depomures will grow to 300 million cu m per cycle from 200 mllion cu m per cycle.
In order to raise money for the planned investments, the two companies intend to apply for grants worth 80 million euro through the European Interconnection Mechanism, ANRE also said.
Natural gas producer Romgaz [BSE:SNG] owns 100% of Depogaz and 40% of Depomures, according to information posted on the websites of the two companies. French multinational electric utility company Engie owns the remaining 59% of Depomures, while 1% is held by various investors.
Depogaz accounts for some 90.23% of the total active storage capacity of Romania.
Founded in 2002, Depomures' main line of business is the storage of natural gas in the Targu Mures deposit.
Shares of Romgaz were trading 0.32% higher at 31.25 lei ($7.07/6.45 euro) as at Wednesday, 1214 CET, on the Bucharest Stock Exchange.
($= 0.9124 euro)
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