Romanian natural gas producer Romgaz has received another extension to utilize public funding for the long-delayed Iernut combined-cycle gas power plant, following a government decision adopted at the end of 2025. The decision amended the rules of the National Investment Plan, extending the deadline for completing and commissioning funded projects to 31 December 2026, while allowing reimbursement of eligible costs until 30 June 2027. Based on this, Romgaz signed an addendum to the financing contract for the 430 MW Iernut plant on 31 December 2025, revising the project timetable and prolonging the contract duration accordingly.
The project has received around €64 million in state funding, but repeated delays have forced Romgaz to request multiple deadline extensions. According to the Ministry of Energy, overall physical completion stands at 97.5%, financial execution at 85.9%, and progress under the most recent construction contract is just over 90%. Romgaz plans to finish the plant by acting as general contractor through a dedicated project unit, taking over key works and service contracts from subcontractors previously engaged by Duro Felguera. The company aims to complete and commission the plant by the end of 2026.
Construction began under a 2016 contract with Duro Felguera and Romelectro, with initial plans for operation in early 2020. After the contract was terminated in 2021, Romgaz signed a new agreement with Duro Felguera in 2023 due to the Spanish firm’s control over essential software, documentation, and intellectual property. That contract set a completion deadline of 19 December 2025, but was terminated again after Duro Felguera sought to suspend works in August—a move Romgaz rejected. Management has stated that identifying remaining works, launching procurement procedures, and signing new contracts will take time, followed by roughly nine months needed for final construction and commissioning. While Romgaz targets end-2026 completion, it acknowledges that not all risks are under its control.
A key partner in the final phase is expected to be General Electric, which supplied the gas turbines and distributed control system and will support the final commissioning of the plant.