November 29 (SeeNews) - Romanian natural gas producer Romgaz [BSE:SNG] said on Tuesday it has signed a 332.3 million lei ($70 million/68 million euro) natural gas sale contract with state-owned electricity and heating utility Electrocentrale Bucuresti, ELCEN.
The contract covers the sale of natural gas stored in underground gas storages in the 2021-2022 cycle, intended for the production of thermal energy in cogeneration plants and in thermal plants as well as for other destinations, Romgaz said in a filing with the Bucharest bourse.
The contract was approved by Romgaz shareholders during an ordinary meeting on Monday.
ELCEN Bucuresti was established in December 2002 and produces 40% of Romania's thermal energy, according to its website. The company is in judicial reorganization since 2018.The energy ministry owns 97.51% of ELCEN, while the remainder is held by Romgaz.
Earlier this month, the Romanian government increased Bucharest municipality's debt ceiling by 500 million lei so that Termoenergetica, the company managing Bucharest's heating network, could pay its debt towards ELCEN.
The majority shareholder of Romgaz is the Romanian state with a 70% stake, with the balance of 30% in free float on the Bucharest Stock Exchange. Last week, Romgaz concluded two electricity sale deals worth 51.8 million lei with the local unit of German energy company E.ON.
Romgaz shares traded flat at 40 lei by 1455 CET on Tuesday on the BVB.
(1 euro = 4.9184 Romanian lei)
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