Ruhrgas takes stake in Romania gas distribution market

Ruhrgas Energie Beteilingungs AG Wednesday became the first international oil and gas company to take a stake in a gas distribution in Romania when it signed a participation agreement in Congaz. Congaz expects to have sales volumes of more than 300 million cu m "in the medium term" as more industrial customers in the Constanza region are connected to the national gas network.

July 4, 2001

By the OGJ Online Staff

LONDON, July 4 -- Ruhrgas Energie Beteilingungs AG Wednesday became the first international oil and gas company to take a stake in a gas distribution in Romania when it signed a participation agreement with Congaz.

Congaz, a newly established gas distributor in the European state, expects to have sales volumes of more than 300 million cu m "in the medium term" as a larger proportion of homes and industrial customers in the Constanza region are connected to the national gas network.

"Our participation in Congaz is another step into a central European growth market," said Ruhrgas executive board Chairman Fritz Gautier. "Romania offer good prospects for expanding our international activities."

Marius Velescu, chairman of Congaz's administrative board, added, "This participation by Ruhrgas in the infrastructure sector is a good sign showing that not only our gas industry but our entire economy is developing favorably."

Romania currently has the larges gas market in central European, according to Ruhrgas, with some 17 billion cu m consumed yearly. Three-quarters of that supply come from indigenous sources and one-quarter from Russia.