Romanian natural gas producer Romgaz [BSE:SNG] said it has extended again the suspension of the notice of termination of its contract with the Duro Felguera - Romelectro consortium for the construction of a 430 MW power plant in order to continue negotiations.
Romgaz decided to suspend the notice of termination until June 2, it said in a statement filed with the Bucharest Stock Exchange on Friday.
The decision was taken with a view of continuing negotiations with the contractor, in order to identify, evaluate and implement a solution to ensure the completion and enforceability of the investment objective as soon as possible, Romgaz explained.
Romgaz suspended the notice for the termination of its contract with the Spanish-Romanian consortium three times before. The gas producer announced the termination of the contract on April 2, saying the consortium had failed to meet some of its contractual obligations in due time.
In June 2017, US-based multinational conglomerate General Electric announced that it was awarded an order from the Duro Felguera - Romelectro tie-up for core technology at the Iernut power plant. Unveiled in 2016, the project in Mures county requires investment of 269 million euro ($325 million), of which majority state-owned Romgaz is covering 75% and the government is contributing 25%.
Shares in blue-chip company Romgaz traded 0.16% higher at 32.9 lei ($8.2/ 6.7 euro) by 1008 CET on Monday on the Bucharest Stock Exchange.
(SeeNews, May 24, 2021)
