REG - S.N.G.N. Romgaz S.A. - Announcement reg.Sarmasel Investment <Origin Href="QuoteRef">ROSNG.BX</Origin>

Societatea Nationala de Gaze Naturale Romgaz SAAnnouncement

20/07/2016 10:35

RNS Number : 7238E
S.N.G.N. Romgaz S.A.
20 July 2016
  July 20, 2016
A N N O U N C E M E N T
regarding the completion of an important investment project at Sarmasel 
On July 20, 2016, Societatea Nationala de Gaze Naturale ROMGAZ SA by its Ploiesti Underground Storage Branch(Sucursala de Inmagazinare Subterana a Gazelor Naturale Ploiesti) commissions the new Compression and Dehydration Facility of Sarmasel (county of Mures), an investment worth over RON 238 million (approx. EUR 54 million) that has been implemented during the last three years.
The new compression and dehydration facility of Sarmasel storage will allow the increase of storage capacity from 800 million Ncm (normal cubic meters) to 950 million Ncm, will improve the quality of the delivered natural gas and will increase the daily gas delivery capacity from 6 to 9 million Ncm/day. The increase of the storage working volume is due to construction of a new compression capacity which will provide the maximum daily flow-rate of 6 million Ncm. The compression and dehydration plant is equipped with state-of-the-art US technology, featuring low energy consumption and complying with all European and national standards in the field of environmental protection.
The commissioning of the new facility at Sarmasel marks a key milestone for Romania's energy security as regards the maximum storage capacity of all natural gas storages. Thus, Romania has the capacity to store 3.3 billion Ncm/cycle, and the investment contributes to increasing the gas withdrawal capacity of the storages to the maximum of 30 million Ncm/day.
ROMGAZ allocates more and more resources to increase the underground gas storage capacity to allow peak shaving during the cold season, as well as for enhancing the security of gas supply to customers.
About underground storage and its role in ensuring energy security
Underground storage is a vital activity in ensuring continuity of natural gas supply necessary for industrial and household consumption. Its objective is peak shaving of the market demand caused by temperature variation, as well as maintaining the optimum operation characteristics of the national gas transmission system.
In addition to gas consumption peak shaving during the cold season, the underground storages play a strategic role in securing gas supply during extraordinary conditions (natural disasters, earthquakes or other unforeseeable events, including accidental interruption of current production or supply of import gas).
About ROMGAZ
S.N.G.N. ROMGAZ S.A. is the largest natural gas producer and main gas supplier in Romania. The Company is admitted to trading on Bucharest Stock Exchange (BVB) and London Stock Exchange (LSE). The main shareholder is the Romanian state holding 70% interest share. The Company has extensive experience in natural gas exploration and production, with a history that started more than 100 years ago in 1909. ROMGAZ performs geological research for discovery of new gas fields, produces methane gas from the fields under its portfolio, stores gas in UGS, performs workovers, recompletions and special operations in wells under company's portfolio and provides specialized technological transportation. ROMGAZ has extended its business area starting from 2013 by taking over Iernut power plant and has become electricity producer and supplier.
~
This announcement is for information only. All provided data refer to findings, intentions, expectations and forecasts made by S.N.G.N. ROMGAZ S.A. The information provided shall not constitute an invitation, offer, recommendation or an opinion expressed by S.N.G.N. ROMGAZ S.A. to any person to trade any of the shares; moreover this document and all information contained herein shall not constitute the basis for concluding any contract, making any investment decision or for any other kind of commitment. The information contained herein shall be available only for the date when they have been released to the public and are not intended to offer consultancy or advice in any matter. 
Director General,
Virgil - Marius METEA

This information is provided by RNS
The company news service from the London Stock Exchange
  END
MSCGIGDRBDDBGLG