Romania’s Romgaz to invest EUR 3.2 bln by 2026

Romania's state-controlled gas company Romgaz plans investments worth RON 15,7 billion (EUR 3.2 bln) by 2025, according to the company's investment strategy to be endorsed by shareholders on June 15, News.ro reported.

A significant part of the money (RON 5.47 bln) will go into the company's offshore projects. Romgaz will invest another RON 5.38 bln in onshore natural gas production, including drilling works, exploration and exploitation wells, surface technological installations.

The company plans to finance about half of the investments (49%) from its own sources, 44% from attracted sources, and 7% with European funds.

The investment scenario does not include the potential negative impact of the coronavirus pandemic and will be revised when the uncertainty diminishes, the company's management said.

At this moment, the company's management expects difficulties in attracting financing due to the volatility in financial markets. Romgaz also foresees higher financing costs, given the impact of the pandemic on major national macroeconomic indicators.

(Photo: Romgaz Facebook Page)