Romania's Romgaz wants to produce electricity, talks with Termoelectrica of setting up company

Romania's state-owned gas company Romgaz is in talks with the country's power producer Termoelectrica as it wants to start producing electricity; the two might set up a company in which Romgaz will hold the main stake, an official said.

Romgaz wants to improve efficiency in using natural gas and we have plants which might be upgraded through investments, said Termoelectrica's general manager, Ioan Ungureanu.

Romgaz officials in early July 2007 said the company's interest in expansion stems from its wish to increase efficiency in using energy resources and to widen its range of services. The officials noted Romgaz may gain long-term advantages by producing electricity.

State-run Termoelectrica is currently setting up mixed companies together with private investors, in a move to create new power producing units and upgrade the ones in Galati, Doicesti, Borzesti and Braila.

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