Transgaz obtains 50 mln euro financing for new pipeline

The European Investment Bank (EIB) grants national gas transmission company Transgaz 50 million euro for the financing of a new pipeline, due to connect Romania's natural gas resources for the Black Sea's shore both to the national gas transmission grid and with the BRUA corridor, thus connecting the transport systems in South-Eastern and Central Europe, the Economy Ministry informs on Monday. 

The transaction is supported by the European Fund for Strategic Investment (EFSI), the financial pillar of the Investment Plan for Europe, known as "the Juncker Plan". 

"The loan secured by Transgaz will contribute to the diversification of gas supply across Europe, allowing for the capitalisation on the off-shore gas resources. The new pipeline will link Romania's natural gas resources from the Black Sea's shore both to the national gas transmission grid and with the BRUA corridor. It is about a project that involves the construction of a 308-km long new transport pipeline, together with the necessary land infrastructure. It represents a firm commitment as regards Romania's energy security and proof of Romania's capacity to develop and implement strategic projects, with a positive impact on the entire European Union," Economy Minister Niculae Badalau stated. 

"The fruitful cooperation between the European Investment Bank and Transgaz aims to ensure the funding for the company's investment projects, namely strategic investment which facilitate the fulfillment of the European Union's objectives of durable and competitive development of the natural gas transmission infrastructure, the diversification of the gas supply sources and the strengthening of energy security and solidarity. Last year, the EIB signed two financing contracts with Transgaz, worth 50 million euro each for the implementation of the first stage of the common interest project (BRUA). It is of strategic importance that the gas produced in the Black Sea be incorporated in the National Gas Transmission System and transported on the Romanian and European markets, so as to enhance the security of the gas supply to Romania and the EU and to guarantee the security of the gas supply to Romanian consumers. The EIB's financial support will significantly contribute to the extension of the national gas transmission infrastructure," mentioned in his turn the Director General of Transgaz, Ion Sterian.