Romanian gas producer Romgaz, one of the most profitable state-owned companies, will receive from the state up to RON 320.9 million (EUR 69.2 million), VAT included, to complete its 430 MW power plant in Iernut.
Romgaz has signed a contract with the Energy Ministry for this non-reimbursable financing. The money is granted through the National Investment Plan (PNI).
The gas producer concluded a contract of EUR 268.8 million last year with the association of Duro Felguera and Romelectro to build a new gas power plant at Iernut. This will be the largest public investment in conventional energy in Romania in the last 20 years.
The Iernut plant will be completed by the end of 2019. US group General Electric will provide the plant’s main technology.
Romgaz recorded a net profit of RON 1.18 billion (EUR 254.6 million) in the first nine months of this year, up 66% year-on-year.