Acasă » Oil&Gas » Romgaz: MoU for the development of “greenfield” investment projects in Romania

Romgaz: MoU for the development of “greenfield” investment projects in Romania

11 June 2020

Romgaz Mediaș and Liberty Galati agreed to conclude a Memorandum of Understanding which envisages the establishment of a joint venture with a view to the development of greenfield investment projects (“from scratch”), respectively the development of a natural gas generation (“CCGT”) units and units for the production of electricity from renewable sources, using both wind and photovoltaic technologies.

Through this Memorandum of Understanding, the two companies agree to work together in the true spirit of the partnership to ensure that there is a unified and receptive approach to the implementation of investment projects, which can be financed from both equity and and from external sources through the “joint venture” type company that will seek to attract European funds through the “Green Deal” financing mechanism and/ or through the financing schemes available in Romania.

The implementation period of these investment projects will be between 3.5 and 4 years, in which both companies will cooperate and make joint efforts for investment projects to become a reality and a model of good practice in the Romanian economy.

“This partnership is an example for Romania. We thus continue Romgaz’s priorities in the long-term development strategy through which we want to diversify the natural gas capitalization chains at a higher level. The investment is an important one at national level and represents a first step of Romania’s positioning on the map of Europe in green steel production. Such investments lead to horizontal developments of many economic sectors and implicitly a motivation for Romgaz to amplify exploration-production programs,” says Adrian Volintiru, general manager of Romgaz.

“Based on the agreement we signed today with Romgaz, we will be able to deliver the long-term competitive energy needed to support this fascinating project to produce low-carbon emissions steel in Galati. I have no doubt that this project will be a great success and will put Galati on the map, not only in Europe, but globally, as a low-carbon, sustainable steel manufacturing unit for a new era, built for future generations,” says Sanjeev Gupta, Executive Chairman of the GFG Alliance.

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