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Romgaz to establish new branch in Drobeta-Turnu Severin

The largest natural gas producer in Romania, Romgaz announced that its shareholders approved the establishment of a new branch in the southwestern city of Drobeta-Turnu Severin to manage the company’s participation in projects under a memorandum of understanding (MoU) signed with public utility Mehedinti.

Romgaz is planning to enter gas distribution and supply market for residential customers, which has recently been liberalized. In the framework of the MoU, the two companies agreed to cooperate for the installation of dozens of small gas-fired power plants in the city.

“Signing the MoU between the two companies and establishing Drobeta Turnu-Severin Branch is actually the first step Romgaz took for becoming an active player on the natural gas distribution and supply market,” said Romgaz CEO Adrian Volintiru.

The operator of the natural gas network in Drobeta-Turnu Severin recently completed a pilot project through which it installed small-scale district heating plant, with an investment of about 100,000 euros, thanks to this project the cost of heating has dropped by about 50 per cent compared to the current price for heating in the city, provided by an old heating plant which runs on fuel oil, writes Romanian news site Energynomics.

Earlier this year the company’s CEO said, in an interview with CEENERGYNEWS, that Romgaz is conserving reserves and planning an ambitious investment program to support the recovery of the economy and thus increase energy consumption.

“Natural gas remains a clean fuel and will be sought after as economies work,” Mr Volintiru underlined, adding that the current low consumption will determine the development of the still unaddressed consumption segments.

In June, Romgaz and SC Liberty Galati agreed on concluding a Memorandum of Understanding 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 (CCGT) and electric power generation units from renewable sources, based both on wind and photovoltaic technologies.

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