Cheap gas for the steel and metalworking industry

Alina Toma Vereha

Central authorities are reviewing various steps for supporting the steel and metalworking industry during the crisis, by providing cheap gas. Adriean Videanu, the minister of the economy, yesterday said, in a press conference: "The only solution is to provide these companies with natural gas produced domestically, which is cheaper than imported natural gas. In turn, we will ask the companies to not resort to layoffs. I do not think that providing gas from the domestic output is an illegal state aid. All the governments took steps against the crisis. What"s more, Romgaz needs contracts, especially in the summer, because gas consumption has decreased significantly".

Mr. Videanu claims that Petrom is also interested in these steps. According to him, the terms under which Sidex Gala i, as well as other companies will be eligible for this aid, will be drafted in the near future. Moreover, by October, Romania needs to set up its natural gas reserves for this year"s winter. Mr. Videanu claims that the gas surplus of Romgaz is large enough and neither the storage program, the domestic gas consumption (from imports and domestic output), nor the base natural gas price will be affected.

The debts of SNLO and CNH are still being reviewed

The Oltenia National Lignite Company (SNLO) has no profitability issues, but is caught in a deadlock caused by failure to collects its debts from the Government Business Enterprise for Nuclear Activities (RAAN), as well as from the electrothermal plants owned by the mayoralties of Braşov, Vâlcea and Arad. Adriean Videanu said that SNLO has 456 million lei in uncollected receivables and 280 million lei in outstanding debts, including towards the state budget. RAAN alone owes SNLO around 200 million lei.

According to Mr. Videanu, the authorities are considering paying RAAN"s debt towards SNLO using the state budget in order to break the financial deadlock that SNLO is in, with notification to be sent to the European Commission of this decision. The Minister of Energy added that the situation of the National Coal Company (CNH) is far more complicated, and that a solution will be discussed after June 15th, together with the restructuring of the mining sector.