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Petrom Signs Contract for Construction of Brazi Power Plant

Posted on: Tuesday, 8 April 2008, 12:00 CDT

Romanian oil and gas producer Petrom has signed a contract with a consortium formed by General Electric and Metka, for the construction of a power plant at Brazi, Romania.

According to the contract, the consortium will build and deliver by September 2011, a gas-fired combined cycle power plant. The value of the contract reportedly exceeds E400 million. Petrom and the consortium are carrying negotiations for the signing of a long-term maintenance contract for the power plant.

Around 20% of the plant's capacity is expected to be used for covering Petrom's own power consumption, while the rest will be sold on the Romanian power market. The plant will be located at the Petrobrazi refinery site.

Construction site preparation works are reportedly underway. The construction of the plant is estimated to begin at the beginning of 2009.

Gerald Kappes, member of Petrom's executive board responsible for gas and power, said: "We agreed with General ElectricMetka the contractual terms for the construction of the Brazi power plant and, further on, we will focus on the construction phase, so that we should begin the supply to the national power network, in the second half of 2011. Petrom shall become an important player on the electricity market given the fact that by 2012 we will ensure approximately 8-9% of the electricity produced in Romania."

Source: Datamonitor

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