Romanian state-owned gas company Romgaz must invest “substantially” to keep the Iernut thermal power plant running, according to the company, quoted by local news agency Mediafax.

Also, the gas producer will have to reduce the unit’s power by 2016 in order to meet environmental requirements.

Romgaz took over the Iernut power plant earlier this year from another state-owned company, Electrocentrale Bucharest. The power plant has a total installed capacity of 800 MW.

Romania plans to attract between EUR 312 million and EUR 415 million by listing 15 percent of the state-owned gas company Romgaz.

The Government recently approved a price range between RON 24 and 32 per share, said the Romanian Minister Delegate for Energy Constantin Nita.

Romgaz, the largest natural gas producer and supplier in Romania, had a turnover of EUR 863 million in 2012, while its net profit was EUR 280 million.

Irina Popescu, irina.popescu@romania-insider.com