- Investments of approximately EUR 530 mn
- Positive impact for consumers, energy sector and Romanian economy
- The power plant started deliveries to the regulated market
OMV Petrom, the largest oil and gas producer in Southeastern Europe, held today the inauguration ceremony of the Brazi power plant, the largest private greenfield power generation project in Romania in the last twenty years. The investments value for the construction and commissioning of the power plant amounted to approximately EUR 530 mn.
The event was attended by Romania’s Prime-Minister, Mr. Victor Ponta, the European Commissioner for Energy, Mr. Günther Oettinger, the President of OMV Petrom’s Supervisory Board and CEO of OMV, Mr. Gerhard Roiss and the CEO of OMV Petrom, Mrs. Mariana Gheorghe, as well as other representatives of the public central and local authorities and company’s partners involved in the project.
Gerhard Roiss, CEO OMV Group: "In the future, Romania will have important energy potential within Europe. The success of OMV Petrom has already proven this. OMV Petrom ranks 16th among CEE’s top 500 companies. We have invested approximately EUR 8 billion since 2005 to make OMV Petrom the region’s growth engine. Nearly all of OMV Petrom’s profit has been re-invested into forward-looking projects to further strengthen this position and to prevent Romania from having to rely on expensive energy imports. This will help Romania develop as the leading energy player in the region."
Mariana Gheorghe, CEO OMV Petrom: "Through the start of the power plant operations in August this year, we are contributing to the sustainable and competitive growth of Romania’s energy sector. More than that, our investment will trigger annual benefits for the Romanian economy through its contribution to the GDP, additional income to the state budget and jobs. At the same time, the power plant will generate benefits for the consumers, namely a greater security of electricity supply and potentially positive impact on the electricity price, due to the increased competition on this market. The power plant will have a significant contribution to the regulated electricity market by supplying an amount of up to 1.8 TWh / year for base-load. The functioning of the power plant will not present risks to the national gas supply in the eventuality of a crisis period, such emergency situations being clearly regulated by the legislation in force".
The plant has a capacity of 860 MW and can supply up to 8-9% of Romania’s electricity demand, equivalent to the electricity consumption of Bucharest.
The plant’s efficiency is twice higher than the sector average (it uses half the gas quantity used by any other gas fired plants in Romania to produce the same amount of electricity) while CO2 emissions are significantly lower and below European average.
The plant is characterized by flexible operations given its capacity of fast start (half the time needed by a conventional plant) as well as the high speed in increasing the electricity production. Thus, the Brazi power plant can react very quickly in order to support the production - consumption balance in the National Energy System (SEN).
Romania’s renewables strategy requires Brazi’s balancing capacity, taking into account that projections show installed wind capacity growing from ~1,300 MW to ~3,000 MW over the next four years. The plant is able to counterbalance the low predictability level of wind power production as the two gas turbines have the capacity to balance approximately 700 MW in wind power plants, when wind is not available.
The power plant delivered electricity to SEN even during the testing period. At the end of last week Brazi power plant started to supply electricity to the regulated market.
Petrom is the largest oil and gas group in Southeastern Europe, with activities in the business segments of Exploration and Production, Gas and Power as well as Refining and Marketing. The Group consolidated its position on the oil market in Southeastern Europe following a far-reaching modernization and efficiency increase process whereas investments accounted for more than EUR 7.7 bn during the last seven years.
In Romania and Kazakhstan, the Group exploits proved oil and gas reserves of approximately 812 mn boe (thereof 786 mn boe in Romania) and has a maximum annual refining capacity of 4.2 mn t as of end of June 2012.
OMV Petrom is present in the distribution market for oil products in Romania, Republic of Moldova, Bulgaria and Serbia through a network of approximately 800 filling stations, operated under two brands, Petrom and OMV. In Romania, this activity is performed through OMV Petrom Marketing, 100% owned by OMV Petrom.
For its sustainable development, Petrom has expanded the gas value chain into power. In this context, OMV Petrom started commercial operations at the 860 MW gas fired power plant at Brazi and at the Dorobantu 45 MW wind park.
In 2011, the Group’s turnover was EUR 5,336 mn, EBIT was EUR 1,165 mn.
OMV, one of Austria’s largest listed industrial companies holds a 51.01% share in OMV Petrom. In Exploration and Production, OMV is active in two core countries Romania and Austria and holds a balanced international portfolio. In Gas and Power, OMV sold approximately 272 TWh of gas in 2011. In Refining and Marketing, OMV has an annual refining capacity of 22 mn t and as of the end of 2011 approximately 4,500 filling stations in 13 countries including Turkey.
The Ministry of Economy holds 20.64% of Petrom shares, the Property Fund SA holds 20.11%, the European Bank for Reconstruction and Development 2.03% and 6.21% is free float on the Bucharest Stock Exchange.