Tuesday, August 16, 2022

HomeFinanceRomgaz signs an MoU to develop greenfield investment projects

Romgaz signs an MoU to develop greenfield investment projects

Romania’s largest natural gas producer and supplier ROMGAZ signed a Memorandum of Understanding with LIBERTY Galati, part of the investment group GFG Alliance, on establishing a joint venture company with the aim of developing greenfield investment projects, including the development of an electric power generation unit fuelled by natural gas and electric power generation units from renewable sources, based on wind as well as photovoltaic technologies.

“This partnership is an example for Romania,” said Adrian Volintiru, Romgaz’ CEO. “We thus pursue Romgaz priorities included in the Long Term Development Strategy under which we are striving to diversify the channels of enhanced gas usage. It is an important investment at the national level and represents a first step towards putting Romania on the EU map of green steel production. Such investments lead to the horizontal development of many economic sectors and, implicitly, motivation for ROMGAZ to increase its exploration-production programs.”

Under this Memorandum of Understanding the two companies agreed to work together to ensure a united and responsive approach as regards the implementation of the investment projects to be financed from own capital as well as from external sources through the joint venture company seeking to attract EU funds under the European Green Deal funding mechanism or the available financing schemes in Romania.

“Based on the agreement signed with Romgaz today we will be able to deliver competitive energy on a long term basis required to sustain such a fascinating project of low-emission steel production in Galati,” Sanjeev Gupta, Executive Chairman of GFG Alliance declared. “I am very confident that the project will succeed and put Galati on the map, not only in Europe but also at global level, as a low-emission steel production unit, sustainable, for a new era built for the generations to come.”

The implementation period of such investment projects will last between three and four years, during which both companies will cooperate and join efforts for such projects to become a reality and a model of good practice in the Romanian economy.

Sign up to our biweekly newsletter

    Most Popular