Romgaz administrators propose the dissolution and liquidation of Amgaz, the company that operates Nadeș gas storage unit (in Mureș county), according to a document issued by the gas producing company controlled by the Romanian state. The proposal will be voted by the shareholders during the meeting on 16 June.

Amgaz, a company founded in 2003, is owned by ENGIE (65%) and Romgaz (35%). Romgaz management proposes to shareholders the appointment of Business Recovery BD&A SPRL as liquidator.

Landslides in 2009 made impossible to store gas at Nadeş facility and the site assessment concluded that it is not recommended to repair the depth storage capacity.

“According to the latest opinion received from NAMR, which targets the underground storage of natural gas at Nadeş – Prod – Seleuş installations, the company hasn’t stored natural gas, but had the obligation to provide a technical-economic study to determine the status of Nadeş deposit”, reads the note accompanying the document related to the shareholders meeting.

The storage activity has been suspended since 2009; last year, Romgaz shareholders approved a 1.9 million lei capital increase for Amgaz. Technical expertise revealed a risk of penalties of up to 31 million dollars if the deposit continues to hold a concession and storage license.

Thus, in 2015 Romgaz administrators proposed the concession termination, financing and carrying well abandonment (with estimated costs of 250,000 euros) and close down the operator. On the contrary, between 2009 and 2012 it was proposed a development plan focused on works to increase the storage capacity of Amgaz from 50 million cubic meters to 300 million cubic meters.