INTERVIEW-Romania may float stake in Romgaz in 2008-official

Fri Mar 21, 2008 8:35pm IST

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By Marius Zaharia

BUCHAREST, March 21 (Reuters) - Romania may float a stake in state-owned gas producer Romgaz this year and could finalise talks with partners for the third and fourth nuclear reactors in the first half of 2008, a government official said on Friday.

Romgaz is the country's main gas producer and together with Petrom SNPP.BX, majority owned by Austria's OMV (OMVV.VI: Quote, Profile, Research), it accounts for all of the country's natural gas production.

Alexandru Sandulescu, general director in the economy and finance ministry in charge of energy strategy, told Reuters in an interview a second nuclear plant, in addition to Romania's plant in Cernavoda, could also be finalised by around 2020.

"It is possible to finalise talks with partners to build the third and fourth nuclear reactors in the first half of this year ... (and) it is very possible to float a stake in Romgaz in 2008," Sandulescu said, without elaborating.

"A second nuclear plant would be built somewhere around 2020, we are working on this project, but we have not decided on location, capacity or on the technology we will use."

Romania is negotiating with Belgium's Electrabel (LYOE.PA: Quote, Profile, Research), Italy's Enel (ENEI.MI: Quote, Profile, Research), Spain's Iberdrola (IBE.MC: Quote, Profile, Research), Czech CEZ (CEZPsp.PR: Quote, Profile, Research), a Romanian unit of ArcelorMittal (ISPA.AS: Quote, Profile, Research) and Germany's RWE (RWEG.DE: Quote, Profile, Research) to create a partnership with Nuclearelectrica, the operator of the sole nuclear power plant.