The BRUA project aims to diversify the gas supply sources of the European countries by offering the technical means to carry gas from the Caspian basin to the markets of central Europe. The project will ensure in the Bulgarian direction of a bidirectional transmission capacity of 1.5 bcm per year and the development of a transmission capacity of 1.75 bcm per year in phase I and 4.4 bcm per year in phase II in the Hungarian direction. The pipeline will have a total length of 528 km.
The EIB funds will finance the construction of a 478 km natural gas transmission pipeline between Podisor and Recas and the construction of three compressor stations located in Podisor, Bibesti and Jupa in Romania, the EIB said in a press release.
"This strategic project implemented under the Investment Plan for Europe will interconnect the South-East and the Central European gas transmission infrastructure and eliminate the dependence of South-Eastern European countries on a single gas supplier," EIB Vice President Andrew McDowell said.
The project will improve the security of supply for these countries, opening up access to potentially cheaper gas, and delivering improved price convergence and transparency, consequently reducing consumer vulnerability. Also, it have a significant impact on employment, creating some 4 000 to 5 000 jobs during the construction phase and 300 to 400 positions during the pipeline’s operation, EIB vice president said.
For his part, Transgaz's CEO Ion Sterian noted that this is an outstanding event for the company and for other Romanian and regional gas market players.
"We expect this financing to have a positive impact both in terms of achieving local and national synergies for the construction and operation of the pipeline and in boosting confidence and solidarity among the European countries set to benefit from the BRUA project,” Sterian added.
In September 2016, Transgaz received a 179.4 million euro grant from the European Commission for the same project.
In mid-September, Romania's government, which is Transgaz's majority shareholder, requested the company to distribute 171 million lei ($44 million/37 million euro) in special dividend for 2016. The Romanian state owns 58.5% of Transgaz, while the remainder is in free float on the BVB.
Transgaz shares traded 0.50% lower at 396 lei on the BVB as at 1420 CET on Friday.
(1 euro=4.5980 Romanian lei)
