Romgaz did not extend the contract with Romelectro and Duro Felguera for the construction of the Iernut plant, as the deadline for the completion of the works, which expired on December 26, 2020, was not met, according to a statement from the gas producer.

“Regarding the Public Procurement Contract no. 138484/2016, having as object the execution of the turnkey project Development of the Iernut Thermal Power Plant (CTE) through the construction of a new thermal power plant, with combined cycle with gas turbines, the National Natural Gas Company Romgaz SA informs shareholders and investors on the following: as the deadline for completion of the works covered by the contract mentioned above was not met, expiring on December 26, 2020, Romgaz decided not to comply with the request submitted by the Association formed by Duro Felguera SA and SC Romelectro SA requesting the extension of this term,” says the release.

Romgaz will find the necessary solutions for the completion and commissioning of the Iernut Thermal Power Plant and will continue to inform the market about this investment, the source quoted by Agerpres also shows.

The national gas producer Romgaz signed, in 2016, a contract worth 268 million euro, without VAT, with the companies Duro Felguera and Romelectro, for the construction of a new power plant for electricity production at the Iernut thermal power plant.

The plant should have been put into operation in early 2020, according to initial plans.