Romgaz CEO: If acquisition proceeds, Romgaz will need more funding to complete gas project.
If the acquisition of a ailing fertilizer producer by Romgaz this year goes through, it may have to use additional funding to pay for its portion of offshore project Neptun Deep.
Romgaz and OMV Petrom have teamed up to develop Neptun Deep, one of Europe's largest natural gas reserves.
Both companies will share the estimated cost of 4 billion?euros ($4.72billion) for this project.
Romgaz issuing euro-denominated bonds since 2024 via a programme of euro medium-term notes to finance its part of the project. However, it may need to raise more funds if the Azomures purchase goes ahead this year.
Razvan Popescu, CEO of Romgaz, told a seminar on energy organized by the daily Ziarul Financiar that "strictly for Neptun Deep" we are covered. However, it all depends if we purchase Azomures 2026.
"That's the only unknown." We think the funding we currently have will be sufficient for 2026. In addition, we also have two additional?credit lines that we could use.
Romgaz has entered into talks to purchase Azomures (a Swiss grain trading company controlled by Ameropa), and Popescu stated that the acquisition is "at a certain price" a good deal.
Neptun Deep contains an estimated 100 billion cubic metres of recoverable natural gas.
The first gas is expected to be produced in 2027. This?project? will likely double Romania's production of gas?and turn it into a net-exporter at a time that the European Union wants to wean itself off Russian gas. $1 = 0.8469 Euros (Reporting and Editing by Jan Harvey).
(source: Reuters)
