Regarding the Investment Objective: Development of Iernut Power Plant by Building a New Combined Cycle Gas Turbine Power Plant

ROMGAZ PRESS RELEASE

August 2, 2023

Regarding the Investment Objective: Development of Iernut

Power Plant by Building a New Combined Cycle Gas Turbine Power Plant

• On August 1, 2023, the Order to start work on the investment objective in Iernut was issued;
• Iernut Power Plant Branch to the executor Duro Felguera S.A. of the site for starting the works to accomplish the investment objective;
• The deadline for completion of the investment objective is 16 months.

Societatea Nationala de Gaze Naturale "ROMGAZ" S.A. (ROMGAZ) informs its shareholders and investors regarding the handover by Iernut Power Plant Branch to the executor Duro Felguera S.A. of the site for starting the works to accomplish the investment objective: "Development of Iernut Power Plant by Building a New Combined Cycle Gas Turbine Power Plant ".

The Handover Protocol/Report of the site, concluded on August 1, 2023, constitutes the Order to start the works on the objective.

In compliance with the provisions of Law No. 24/2017 and F.S.A. Regulation No. 5/2018, S.N.G.N. ROMGAZ S.A. informed its shareholders and investors upon the signing on April 3, 2023 of the Procurement Contract No. 40928/April 3, 2023 with Duro Felguera S.A., having as scope "Completion of works and commissioning of investment objective: «Development of Iernut Iernut Power Plant by Building a New Combined Cycle Gas Turbine Power Plant»".

The deadline for completion of the investment objective is 16 months from the date of the works start order, with the possibility of extension according to the provisions of the contract.

Razvan POPESCU, ROMGAZ Chief Executive Officer: "On August 1, 2023, by issuing the order to start the works, the construction of Iernut Power Plant, with an installed capacity of 430 MW, a strategic project for ROMGAZ as well as for Romania, enters the straight line. Thus, we manage to continue the investment project and effectively enter the stage of developing the new contract for putting the plant into operation in the shortest possible time. We will closely monitor the progress of the contract for the completion of the works and will continue to regularly inform the capital market and the investors in relation to the progress made."

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About (CTE) Iernut Power Plant

Situated in an important hub of the National Energy System, in the center of Transylvania, (CTE) Iernut Powerplant is located in Mures County, on the left bank of Mures River, between Iernut and Cuci and it is provided with all the facilities needed for operation: natural gas supply station (SRM Cuci - belonging to Transgaz), raw water for preparing working and cooling fluid (Mures River) and the possibility to connect to SEN (High Voltage Power Station 110/220/400 kv Transelectrica) for discharging the produced electricity.

By taking over CTE Iernut in 2023, Romgaz became an important electricity producer of the National Energy System (SEN). The Power Production Branch (SPEE) Iernut operates and maintains Iernut Powerplant.

Societatea Naţională	T: 004-0374 - 401020	551130, Mediaş	Capital social: 385.422.400 lei
de Gaze Naturale	F: 004-0269-846901	Piața C.I. Motaş, nr.4	CIF: RO 14056826
Romgaz S.A.	E: [e-mail]	Jud. Sibiu - România	Nr.ord.reg.com: J32/392/2001

CTE Iernut, with an installed capacity of 800 MW, was put into operation between 1963 - 1967, with four Czechoslovak manufacturing 100 MW groups and two Soviet manufacturing 200 MW groups. The current global capacity of the old powerplant is -32%.

Upgrading and developing CTE Iernut became necessary and appropriate for improving the powerplant's technical and economical parameters, to increase operation safety and ensuring compliance with the provisions of the European Parliament Directive EU 2010/75 on industrial emissions. 2021 - 2023 development strategy has set as a priority to strengthen Romgaz' position on the energy markets, thus optimizing the activity by increasing (CTE) Iernut Powerplant performance to minimum 55%, complying with the environment requirements (NOX emissions, CO2) and enhancing the operational security.

Having in view the constructions at the Gas Turbine Combined Cycle Powerplant 430 MW, the necessity to use methane gas supply circuits, cooling water circuits and electric connections to the existing high voltage cells, in 2019 groups 1, 2, 3 and 6 were definitively shut down. Currently only group 4 (100 MW) and 5 (200 MW) are operating. The old powerplant will be maintained in operation until the beginning of the new powerplant commercial exploitation.

About ROMGAZ

S.N.G.N. ROMGAZ S.A. is the largest natural gas producer and the main supplier in Romania. The company is listed on Bucharest Stock Exchange and GDRs are traded on London Stock Exchange. The majority shareholder is the Romanian State owning a 70% stake. The company has a vast experience in the field of gas exploration and production, with a history that began in 1909 and spans more than 100 years. ROMGAZ undertakes geological exploration with the aim of discovering new gas reserves, produces methane by exploiting the reservoirs included in the company's portfolio and stores natural gas in underground storages; it performs well interventions, workover and special operations, and ensures technological transportation professional services. In 2013, ROMGAZ extended its scope of work by taking over Iernut thermoelectric power plant, becoming electricity producer and supplier.

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