April 26 (SeeNews) - Romanian natural gas producer Romgaz [BSE:SNG] said it has decided to extend the suspension of the notice of termination of a contract with a consortium comprising Duro Felguera and Romelectro for the construction of a 430 MW power plant, in order to continue negotiations.
Romgaz decided to suspend the notice for the termination of the contract for the Iernut power plant until May 7, acting at the consortium's request, it said in a statement filed with the Bucharest Stock Exchange on Friday.
The decision was taken with a view of continuing negotiations with the contractor, in order to identify, evaluate and implement a solution to ensure the completion and enforceability of the investment objective as soon as possible, Romgaz explained.
Romgaz first suspended the notice for the termination of its contract with the Spanish-Romanian consortium on April 9. The gas producer announced the termination of the contract a week earlier, saying the consortium had failed to meet some of its contractual obligations in due time.
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 in the Iernut power plant. Unveiled in 2016, the project in Mures county requires investment of 269 million euro ($314.5 million), of which majority state-owned Romgaz is covering 75% and the government is contributing 25%.
Shares in blue-chip company Romgaz traded flat at 32.5 lei by 1250 CET on Monday on the Bucharest Stock Exchange.
(1 euro=4.9238 lei)
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