Romania’s state-controlled natural gas company Romgaz wants to set up, in partnership with SAPE - the entity that manages state’s assets in the energy sector, an energy supply firm that would operate in the retail market serving industrial customers and residential clients in a later stage.

The company’s shareholders have been summoned to endorse the plans on December 11.

The capital of the would-be energy supplier is planned at RON 225 million (EUR 47 mln). Romgaz would contribute RON 135 million (EUR 28 mln), representing 60% of the joint stock company formed with SAPE.

The new division would supply natural gas as well as electricity.

The internal rate of return is estimated at between 6.36% and 12.6%, depending on how much electricity the new company will be able to sell. Romgaz operates a 600MW gas-fired power plant at Iernut.

Its capacity to produce electric power accounts for 5% of the domestic/national market share.

(Photo: Romgaz Facebook Page)

editor@romania-insider.com