Romania’s national gas producer, Romgaz (BVB: SNG), plans to establish a subsidiary in the Republic of Moldova as it expands its supply operations beyond the domestic market. The proposed company, Romgaz Furnizare M, based in Chisinau, would be engaged in the sale of natural gas via pipelines, according to a note to investors sent by SNG quoted by Economedia.ro. 

The initiative requires shareholder approval, which will be sought at an extraordinary meeting on April 29.

Romgaz is also considering the acquisition of shares or assets from a renewable energy company, pending shareholder consent. To facilitate this, the company is requesting approval for legal consultancy, assistance, and external representation services.

For 2025, Romgaz has proposed an investment program with a total budget of RON 5.41 billion (EUR 1.09 billion), including RON 5.09 billion (EUR 1.02 billion) in investment expenditures. This includes RON 1.29 billion (EUR 260 million) for Romgaz’s direct investments and RON 3.8 billion (EUR 770 million) for Romgaz Black Sea Limited, as well as RON 325.65 million (EUR 66 million) allocated for loan repayments.

The investment strategy focuses on increasing natural gas reserves, offsetting production declines, and expanding electricity generation. Key initiatives include financing Romgaz Black Sea Limited’s development of the Neptun Deep offshore gas project, maintaining its 12.2% stake in Lukoil, and continuing geological research through new exploration wells.

In the energy sector, Romgaz aims to complete the Combined Cycle Power Plant with gas turbines at Iernut and develop a 50 MW photovoltaic park. Additional investments will modernise well intervention equipment, upgrade gas drying and compression stations, and improve infrastructure at production sites.

iulian@romania-insider.com

(Photo source: Facebook/Virgil Popescu)