Romgaz’s gas output down on lower demand, repair works

Oil&Gas Materials 13 November 2020 15:20 (UTC +04:00)
Romgaz’s gas output down on lower demand, repair works

BAKU, Azerbaijan, Nov.13

By Leman Zeynalova – Trend:

During the first 9 months of 2020, Romania’s Romgaz company produced 3,198 million cubic meters of natural gas, by 752 million cubic meters (-19 percent) less than the volume produced during the same period of the previous year, Trend reports citing the company.

The level of gas production recorded for the first 9 months of 2020 was influenced by: Overlap of commercial, economic, medical and regulatory factors resulting in a decrease of gas demand in Q2 and Q3; Continuous rehabilitation projects on the most important mature gas reservoirs; Implementation of well workover operations; completion of investments in the development of production infrastructure and connection of new wells to this infrastructure.

The volume of gas sold by Romgaz in the first 9 months of 2020, representing deliveries to customers, CET Iernut consumption and technological consumption, recorded an estimated decrease of 18.4 percent as compared to the similar period of the previous year.

The volume of produced electricity as indicated in the table below is in close connection with energy demand, evolution of prices on the competitive markets, evolution of investment works performed at the new CTE Iernut, works restricting in 2019 the operation of power units belonging to the old power plant.

Total income is lower by RON 922.4 million, recording a decrease by 23.5% while total expenses decreased by 25.1 percent. Consolidated Gross result for the reporting period is lower by 20.71% as compared to the similar period of the previous year (RON -289.1 million) due to the following influential factors:

Expenses decreased by 25.1 percent (RON -634.4 million) following a reduction of royalty-related expenses (RON -140.9 million), of windfall tax (RON -220.9 million), of cost of gas purchased from import for resale (RON -74.4 million) and of depreciation and amortization expenses (RON -71.2 percent million).


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