While waiting for the verdict on the bids submitted for Distrigaz Sud and Distrigaz Nord to be revealed, the German Ruhrgas Group is still paying attention to private natural gas distribution in Romania.
Subsequently, Congaz Constanta, in which Ruhrgas holds 28.57%, is getting ready to start a $6 million investment plan. This forms part of its strategy to boost the number of clients from the current 7,000 to 27,000 by 2009.
"We expect 20%-25% growth in the number of clients each year," stated general manager Augustin Oprea.
Half of the money will come from Congaz's shareholders, following a capital increase from $11.35 million to $14.35 million. "To secure the rest of the funding for the investment plan, we will take out a $3 million loan," Oprea added. Congaz's main shareholders are E.ON-Ruhrgas, SNP Petrom and Distrigaz Sud, each of which owns a 28.57% stake. Shareholders also include Petroconst SA Constanta, with 13.93%.
To sustain the investment plan, Congaz's shareholders also agreed to reinvest all profits during the next few years.
Congaz is to complete the distribution network in Constanta, with the deadline for the 13.5 million-euro investment set for 2009. The reasons for the initiation of the project include growing demand from household consumers and synchronisation with the programme to asphalt the city's streets. The company's representatives explained that Congaz anticipates turnover of 7.5 million euros for 2004, a figure which should constantly grow by 15% a year to somewhere in the region of 21.8 million euros by 2009.
The investments Congaz will be carrying out in the future include the project to develop the natural gas distribution network in the south of the Romanian Coast, a project that will be realised with the help of Transgaz SA.
Congaz has received 13,000 applications from consumers wanting to be connected to the distribution network, with the company representatives anticipating the number of applications to increase a great deal in the coming period.
The increase in the number of applications from individuals is chiefly due to the establishment of the marketing department, according to Ulrich Scholer, member of the Board of E.ON Ruhrgas International and the German company's official in charge of the Central and Eastern European region.
Ruhrgas is running significant investments in Hungary, Slovakia, the Czech Republic and the Baltic states.
The Romanian natural gas distribution market is currently dominated by the two large state-owned operators Distrigaz Sud and Distrigaz Nord. These were put up for privatisation and are currently being disputed by Gaz de France, Enel (Italy), Ruhrgas and Gazprom (Russia).
alexandru.cerchez@zf.ro
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