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Romania's Romgaz says works on Iernut gas power plant project 80% completed

Romania's Romgaz says works on Iernut gas power plant project 80% completed Romgaz's Iernut power plant upgrade project Source: Romgaz

BUCHAREST (Romania), October 13 (SeeNews) - Romanian natural gas producer Romgaz [BSE:SNG] said that approximately 80% of the 430 MW combined cycle gas turbine power plant in Iernut has been completed.

From a general point of view, approximately 80% of the turnkey project including designing, execution, training and courses is completed, Romgaz said in a statement filed with the Bucharest Stock Exchange, BVB, on Tuesday.

Romgaz will submit technical report to the energy ministry, which is the financing authority for the project, and to contractors Duro Felguera and Romelectro for consideration.

In July, Romgaz said that the energy ministry will extend until December 31, 2022 the financing contract for the construction of the plant in Iernut. Romgaz and the energy ministry signed an addendum to a 2017 financing contract for the construction of the plant.

In June, Romgaz said its contract with Duro Felguera - Romelectro tie-up for the completion of the construction the plant in Iernut was cancelled because the consortium had failed to complete the works in time. Romgaz first terminated the contract in April but then suspended the termination notice four times in order to continue negotiations with the consortium.

In June 2017, US-based multinational conglomerate General Electric announced that it was awarded an order from the Duro Felguera - Romelectro tie-up for core technology at the Iernut power plant. Unveiled in 2016, the project in Mures county requires investment of 269 million euro ($311 million), of which majority state-owned Romgaz is covering 75% and the government is contributing 25%.

Shares in blue-chip company Romgaz traded 0.43% higher at 35.15 lei ($8.2/7.1 euro) by 1253 CET on Wednesday on the Bucharest Stock Exchange.

(1 euro=4.9490 lei)

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