Romanian Natural Gas Producer Romgaz Sets Up New Branch

The memorandum stipulates that the parties will partner in building several dozen power plants in the area.

SEATTLE (Oil Monster): Romanian natural gas producer Romgaz [BSE:SNG] said that its shareholders have approved the establishment of a new branch in the southwestern city of Drobeta-Turnu Severin.

The new branch will manage the company's participation in projects under a memorandum of understanding (MoU) signed with public utility S.C. Mehedinti on September 11, Romgaz said in a press release on Monday. The memorandum stipulates that the parties will partner in building several dozen power plants in the area.

'Signing the MoU between the two companies and establishing Drobeta Turnu-Severin Branch is actually the first step Romgaz took for becoming an active player on the natural gas distribution and supply market,' Romgaz CEO Adrian Volintiru said.

The majority shareholder of Romgaz is the Romanian state with a 70% stake, with the balance of 30% in free float on the Bucharest Stock Exchange

Romgaz shares traded 1.06% higher at 28.55 lei ($7/6 euro) lei by 0951 CET on Tuesday on the BVB.

Courtesy: www.renewablesnow.com