Romania's state-owned gas producer Romgaz is unlikely to resume fertiliser production at the assets it agreed to acquire from Azomureș before the second quarter of 2027, according to an internal report prepared for shareholders and cited by Ziarul Financiar.

Romgaz signed a contract on May 29 to acquire Azomureș's production assets for about EUR 70 million and is seeking shareholder approval at a meeting scheduled for July 6.

The report outlines both the strategic rationale and the risks associated with the transaction. 

The main obstacle to an earlier restart is the availability of natural gas. Under an emergency ordinance adopted in March 2026, Romgaz is required to prioritise household consumers with its own production until April 2027, limiting the volumes available for industrial use.

Another challenge concerns staffing. Restarting the complex chemical platform will require specialised personnel, but a separate ordinance adopted in 2025 restricts recruitment by state-owned companies in the absence of rising revenues. Since the first revenues from the fertiliser business are expected only in the second quarter of 2027, Romgaz could face difficulties hiring staff during the preparation phase.

Romgaz management argued that integrating fertiliser production would create a natural hedge by consuming internally produced gas rather than selling it on the market. The move is also intended to reduce Romania's dependence on imported fertilisers.

However, the report acknowledges that the strategy could prove unfavourable in periods characterised by high gas prices and weak fertiliser prices, potentially weighing on the company's profitability.

iulian@romania-insider.com

(Photo source: Facebook/Azomures)