Romgaz

Early history and foundation

On the present-day territory of Romania, the first natural gas deposit was discovered in 1909, in S?rm??el, Mure? County , further to geological researches on potassium salts. The first gas production was used to power the steam boilers in S?rm??el and the gas lighting of the alleys in Bazna resort. The first gas transmission pipeline was built in 1914 covering the 55 km between S?rm??el and Turda, with the last being the first city in Europe to have public street lights fuelled by natural gas in 1916. In 1927 the first natural gas compression station in Europe was built in S?rm??el. Following the successful gas discovery many foreign companies started to prospect the territories including American, British, French and Austria-Hungarian companies. The American success in the exploitation and usage of natural gas determined the foundation of Societatea Maghiara de Gaz Metan UEG by the Hungarian Ministry of Finances and Deutsche Bank whose scope of activity was the exploration, exploitation, transmission, distribution and use of natural gas in certain regions within Transylvania. A prodigious period followed for the gas distribution business and the year 1941 marks the construction of the first natural gas pipeline from M?ne?ti to Bucharest, while the following year a main pipeline is built for the transportation of natural gas from Transylvania to the capital city. After the unification of Transylvania and Romania in 1919 the Direc?ia gazului natural company is established at Cluj Napoca affiliated to the Ministry of Industry and Commerce in Bucharest, which later in 1925 was renamed to Societatea Na?ional? de Gaz Metan SONAMETAN .

Early expansions and formation of today's company

The first underground storage facility was operated in 1961, and in 1976 the company's largest natural gas output was realised 29.8 cubic kilometers. In 1991 the company is renamed as Regia Autonom? Romgaz RA and in 1998 it is renamed as Societatea Na?ional? de Gaze Naturale Romgaz SA. In the year 2000, Romgaz was then divided into five smaller independent companies: Exprogaz, Depogaz, Transgaz, Distrigaz Sud and Distrigaz Nord. And in 2001, Exprogaz and Depogaz were merged to create SNGN Romgaz SA the current company.

Privatization

Until 2004, the government of Romania held 100% of shares in Romgaz and in 2005, first announced plans of privatizing the company. Discussions over possible investors were held until 2006 and then further delayed several times and eventually pushed back until 2009. In 2010, plans to sell 15% of the company resurfaced but another two years went by, before details of the deal to be became more specific. The government then decided to sell 15% of different energy companies via initial and secondary public offerings. Romgaz finally debuted the planned percentage of shares on Romanian and London stock exchanges in November 2013. The IPO became the largest in the history of Romania, raising almost €390 million.In 2007, Romgaz was granted eight concessions by the Romanian National Agency for Mineral Resources and announced to invest €220 million annually into exploration in the concession areas over the next three or four years . In the same year, Gazprom negotiated the establishment of a joint-venture with Romgaz, to build and operate storage facilities for up to two billion cubic meters of gas.In 2010, Templeton which since 2009 manages the Romanian national compensation fund Fondul Protrietatea, threatened legal action against the Romanian government, which attempted to use their shareholder superiority to channel money from the company to compensate for a national budget deficit. In 2015, Fondul sold a 3.78% stake in Romgaz and in 2016, sold another stake worth $132 million.In November 2013, after several years of delay in the privatization process, the government took a 15% stake of Romgaz public. The IPO raised $520 million. Following the initial offering, the company's shares rose and Romgaz was valued at around $4.0 billion. The IPO was part of a wider privatization agreement between Romania and the International Monetary Fund.

Recent developments

In 2015, Romgaz announced that the company would expand their conventional gas operations and not invest into shale-gas technologies and exploration for now. General Director Virgil Metea stated: "Let's say in the medium term, up to five years, we do not plan shale gas . This is our current stance."In June 2016, Romgaz, Transgaz and OMV Petrom were raided by EU antitrust regulation agencies, suspected of working together to block gas exports to other EU countries.In 2017, the company announced the discovery a new gas field. The caragele gas field, with total proven reserves of around 986 billion cubic feet , was the largest gas discovery by Romgaz in the previous three decades. First production was initially expected to launch in 2019 and full operational functions are currently expected by 2021–2022.In 2018, news about a potential partnership between Romgaz and Azeri group Socar in different Black Sea offshore gas and pipeline projects surfaced. In November 2018, the company announced that it has ordered a feasibility study for a possible new gas power plant with a 400-500 MW capacity, to be erected in Mintia, near Deva.In February 2019, a Romanian delegation led by Iulian-Robert Tudorache, State Secretary of the Romanian Ministry of Energy, together with representatives of the Romanian companies Transgaz and Romgaz, visited Azerbaijan's Energy Ministry to discuss the potential participation of Romania in the Southern Gas Corridor.