Romanian energy minister Virgil Popescu blamed the former management of the state-controlled gas producer Romgaz (SNG) for the failed EUR 268 million power plant project.

The project suffered a major setback after the company terminated the contract with the plant's constructors on December 30 last year. Popescu blamed the management for not closely supervising the works and, instead, being interested only in selling the natural gas produced, G4media.ro reported.

In 2016, gas producer Romgaz signed a contract worth EUR 268 million, without VAT, with Duro Felguera and Romelectro for building a new gas power plant at the existing Iernut thermal power plant.

The company was planning to put the new plant into operation in early 2020, but the contractors did not meet the deadline, and Romgaz eventually terminated the contract on December 30, 2020.

In January, the company's Board of Directors, controlled by the Energy Ministry (70% of the shares), fired the former general manager, Adrian Volintiru. After an interim term of Daniel Pena, the Energy Ministry appointed a new manager - Marius Aristotel Jude, the former head of the company's Board of Directors.

Despite the company's failure with the new plant project, energy minister Virgil Popescu says Romgaz is ready to take over the 50% stake held by US group ExxonMobil in the Neptun Deep offshore gas project in the Black Sea.

"Romgaz is negotiating to take over Exxon's 50% stake, to be part of this Black Sea gas operation alongside OMV Petrom. Romgaz can do this; we have had discussions. I prefer Romgaz to join the Black Sea project," minister Popescu said at a conference organized by Ziarul Financiar.

(Photo: Romgaz Facebook Page)

andrei@romania-insider.com