Romanian state-controlled natural gas company Romgaz has concluded a contract worth RON 525.9 million (EUR 107 mln) with Bucharest power producer Electrocentrale Bucuresti (Elcen), the company that also supplies the heat and hot water to Bucharest residents, Bursa reported.

The contract was signed after incumbent mayor Gabriela Firea lost the race for a new term and new mayor Nicusor Dan promised a more sustainable strategy for the municipality's heating system.

Elcen, currently under insolvency, ponders the option of selling at least part of its assets to Termoenergetica, Bucharest's heat distributor.

Nicusor Dan reportedly already contacted Elcen's management to explore the options.

The contract signed by Romgaz and Elcen is for the delivery of natural gas between October 1, 2020, and September 30, 2021, according to a report submitted by Romgaz to the Bucharest Stock Exchange (BVB).

(Photo: Pixabay)

andrei@romania-insider.com