TABEL Romgaz signed gas supply contracts at regulated prices with 10 heating companies

Romgaz, the most important domestic gas producer, majority owned by the Romanian state, signed gas supply contracts at a regulated price of 120 lei/MWh with 10 district heating companies in the country for the 2024-2025 gas year, the total amount to be delivered being over 1.5 TWh, representing approximately 3% of the quantity supplied to the local market in 2023 by the company.

The total value of the contracts signed with the 10 heating companies is almost 200 million lei, without VAT, according to the legislation in force, the regulated price of one MWh being 120 lei, to which is added the tariff for reserving transmission capacity at the entry point in the national transport system (SNT) and VAT.

Added to these contracts is the one signed with ELCEN, for 3 TWh (approximately 6% of the amount of gas delivered by Romgaz in 2023), worth approximately 380 million lei, excluding VAT.

The largest contract, worth 69.3 million lei, was signed with SC Termoficare Oradea, another high contract, worth 31 million lei, was initialed with Compania Municipală Termoenergetica Bucharest.

The daily quantity of natural gas scheduled to be delivered is determined by dividing the monthly contracted quantity by the number of calendar days in the delivery period, rounded to three decimal places, with the adjustment of the daily quantity from the last day of delivery, in order to obtain the total contracted quantity.

The payment of the consideration for natural gas is made in advance, before the start of the delivery related to each month of delivery or at a maturity of 30 days from the date of invoicing.

In addition to these, Romgaz also signed a contract for the delivery of 300 GWh of gas with the transport operator Transgaz in the amount of 37.2 million lei.

Last year, Romgaz delivered a total of over 50 TWh to companies on the domestic market.

The quantities were not negotiated by Romgaz with the respective companies, according to the legislation in force they were established and distributed by the Transport System Operator (Transgaz).

The quantities and amounts to be paid by state-owned companies to Romgaz

According to the legislation in force, “between April 1, 2024 and December 31, 2024, natural gas producers who carry out both onshore and/or offshore extraction activities, regardless of the start date of this activity, as well as natural gas sales activities (among which also includes Romgaz – no) have the obligation to deliver, at the price of 120 lei/MWh, the necessary quantities of natural gas resulting from the current internal production activity to the suppliers of the thermal energy producers or directly to the thermal energy producers, as the case may be, only for the amount of natural gas used in the production of thermal energy in cogeneration plants and in thermal plants intended for consumption by the population, hereinafter referred to as PET, to ensure the consumption needs of these customers from current production between November 1, 2024 and March 31, 2025, and from underground natural gas storage facilities”.